#Defi is one of sectors revolutionizing #Crypto but for a beginner it can be complicated and hard to understand
Starting from small beginnings #defi is now a 270 billion dollar industry.
Below is all you need to know about #defi and how you can profit from it 🧵
1/ Traditional Banking System
Before we understand #defi lets talk about Centralized Finance (CeFi) our current financial system where the authorities control and set the rules for the industry. So when you use CeFi, you put your trust in the authorities like banks or the Govt.
2/ This model worked well in the last century but the Global Recession revealed its flaws. The balance sheet problems of a few large over leveraged financial institutions resulted in a global recession through which millions were impacted and huge bailouts resulted in inflation