What you’ll learn
- What Defi is & what it enables you to do
- What you need to take advantage of Defi opportunities
- The language & key terms associated with Defi
- The risks of interacting with Defi protocols
Decentralised finance, or Defi, is a system for providing open access to financial services. This is achieved by recreating the tools of traditional finance in a cryptocurrency context, using blockchain as the means of distributing, recording and storing value.
Think of all the services you associate with a bank: savings, lending, credit, insurance. Defi provides all of this in a permissionless setting.
Why is it permissionless? Well, in order to obtain credit from your bank – or to even obtain a bank account in the first place – you need to produce certain documents and pass a background check to determine your creditworthiness.
With Defi, no one cares who you are, where you are, or how rich you are. If you have an internet-connected device and a basic knowledge of how crypto works, you can interact with Defi and use it to manage your money and grow your wealth,
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