Let's Talk about DeFi..
DeFi stands ๐๐ฒ๐ฐ๐ฒ๐ป๐๐ฟ๐ฎ๐น๐ถ๐๐ฒ๐ฑ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ but what's it all about?
Is it just Bitcoin? What does it really entail?
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ฒ๐๐ถ? [DeFi 101] ๐
A Thread ๐งต
๐๐๐
DeFi stands ๐๐ฒ๐ฐ๐ฒ๐ป๐๐ฟ๐ฎ๐น๐ถ๐๐ฒ๐ฑ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ but what's it all about?
Is it just Bitcoin? What does it really entail?
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ฒ๐๐ถ? [DeFi 101] ๐
A Thread ๐งต
๐๐๐
When we talk about #Bitcoin, we talk about a peer-to-peer system that allows people to send and receive money without any intermediary like the Bank or stock Exchanges.
But Financial services are more than sending and receiving, ain't that right?
That's where Defi comes in.
1/n
But Financial services are more than sending and receiving, ain't that right?
That's where Defi comes in.
1/n
DeFi not only allows transfer of money.
It allows for other financial services such borrowing, lending, fixed deposit, etc.
2/n
It allows for other financial services such borrowing, lending, fixed deposit, etc.
2/n
How it works:
#Decentralized Finance uses Blockchain technology.
This allows for decentralised apps (Dapps) to be built on them.
3/n
#Decentralized Finance uses Blockchain technology.
This allows for decentralised apps (Dapps) to be built on them.
3/n
I explained Blockchain and Dapps here
4/n
โคต๏ธ
4/n
โคต๏ธ
https://twitter.com/cryptobafemi/status/1514907667369705476?t=2Ek5WuDeo3jsU511b67IiQ&s=19
Crypto ecosystems that allows the implementation of DeFi are also known as Layer-1 Blockchains. Examples are:
-Ethereum
-Binance Smartchain
-Avalanche (#aave )
5/n
-Ethereum
-Binance Smartchain
-Avalanche (#aave )
5/n
Advantages of DeFi over Traditional/Centralised Finance:
- No need for trust in an intermediary, instead everyone in the system set their own rules.
- It can be accessed globally without restriction without restrictions unlike Traditional finance.
6/n
- No need for trust in an intermediary, instead everyone in the system set their own rules.
- It can be accessed globally without restriction without restrictions unlike Traditional finance.
6/n
- It is private, censorship resistant and permissionless, your assets belong to you and you only.
- It's not prone to human error, unlike the central bank that can mismanage people's funds.
7/n
- It's not prone to human error, unlike the central bank that can mismanage people's funds.
7/n
Functions of DeFi:
-Decentralised #Exchanges (Dexes)
-Lending and borrowing.
-Staking
-Yield Farming
-Non-Fungible tokens (#NFTs )
- No Loss games and lottery.
8/n
-Decentralised #Exchanges (Dexes)
-Lending and borrowing.
-Staking
-Yield Farming
-Non-Fungible tokens (#NFTs )
- No Loss games and lottery.
8/n
Hit the Retweet button on the First tweet if you found this thread helpful.
Recapโคต๏ธ
0: Let's Talk About DeFi
1: What is DeFi
2: What is DeFi (cont'd)
3: How it Works
4: Blockchain and Dapps
5: Layer-1 Ecosystems
6: Advantages of DeFi over TradFi
7: Advantages (cont'd)
๐Examples of DApps
0: Let's Talk About DeFi
1: What is DeFi
2: What is DeFi (cont'd)
3: How it Works
4: Blockchain and Dapps
5: Layer-1 Ecosystems
6: Advantages of DeFi over TradFi
7: Advantages (cont'd)
๐Examples of DApps
NOTE: I'll be writing about DeFi more in future so follow if you haven't and turn on post notification๐
Check my previous thread on How to Do Your Own Research
https://twitter.com/cryptobafemi/status/1533215949838508034?t=tGrVlYnTf0FOmgwvGJ7KaQ&s=19
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