DeFis Institutional Influx: Redefining Risk And Reward
Decentralized Finance (DeFi) has emerged as a revolutionary force in the financial world, promising to democratize access to financial services, enhance transparency, and reduce reliance on traditional intermediaries. This rapidly evolving ecosystem, built on blockchain technology, offers a wide range of applications, from lending and borrowing to trading and asset management. But what exactly is DeFi, and how does it work? Let’s dive into the world of decentralized finance and explore its key components, benefits, and potential risks.
What is Decentralized Finance (DeFi)?
Defining Decentralized Finance
Decentralized Finance, or DeFi, refers to financial applications built on blockchain networks, primarily Ethereum. Unlike traditional finance (TradFi), which relies on centralized instituti...