What is DeFi and Why is it Exciting?
De-Fi is Decentralized Finance, a Finance System that has no center
The first known defi project was bitcoin.
Then came alt-coins.
STEEM, Dapps (Decentralized Apps), Hive, and Blurt. Systems with no center, which are created to store value in an alternative way to fiat are all considered "defi"
But because there is more to finance than storing value, than defi is more than storing value as well.
Finance is more than currency.
Finance is car loans, mortgages, student loans, insurance, and margin trading.
Finance is more than online shopping, grocery stores, etsy shops, and paying someone to clean your home.
That is what the "De-Fi" Craze is:
A layer of depth being added to our crypto values. Making our current cryptos do more than store value.
We are moving beyond a system where we can simply hold coins, and wait for the value to raise. Now, we can take our coins, and invest them, and earn interest on them. Now we can take our coins and use them as collateral to get loans in fiat.
We can use our coins to shop.
Margin trading is also defi. Lending someone "liquidity" so that they can margin trade is defi.
Making any traditional finance project work with smart contracts as "heads" instead of companies and individuals is defi.
Defi is still being built.
There are an infinite amount of nooks and crannies to fit, and every time we find a decentralized way to fill these nooks and crannies, we will be working with defi.
There are lots of opportunities, because crypto is at its infancy, and depth is barely being built.
Do Not Let Yourself get lost in the "Uniswap" faze of defi
Yes, margin trading is a defi project, but remember that defi is a lot more than that.
Any project that is not centralized and has to do with finance is a defi project.
If you are blogging and investing in steem than you are already investing in defi
Do not get caught up in the "craze".
Remember that defi is HUGE and more and more opportunities will keep presenting themselves.
What is your favorite defi project? Do you prefer to invest time or fiat into your defi platforms?
This article has been re-written for the steem blockchain. It was originally published by me on the HIVE network via the @spinvest account. Spinvest is an investment club and I am one of their content creators.
Hi @metzli
I love your post because you make several important points!
First of all, if your a Steem is powered up to Steempower your already investing in DeFi!
Second, if your Steem is powered up as SteemPower and your delegating SP to curation projects like Project Hope that’s the second way your in DeFi!
Third point amongst quite honestly, many good points is that DeFi is very broad and new forms of a DeFi are being invented.
It’s definitely a very broad field and your post hopefully opens peoples eyes to the broad variety of programs and projects in the DeFi world.
💪writing
@shortsegments
#twopercent
#usa
I was very confused for a while because "defi" is so broad. Thank you for taking the time to read and comment.
Love your comment @shortsegments
Have a witness !BEER
Informative article pointing out some new things I wasn't aware of before.
It was really worth reading this
Dear @metzli
I must admit, that I initially couldn't understand much about DeFi and I still struggle to find (or imagine) any real-use cases. Friend of mine recommended to learn about Compound - have you ever heard about this one?
Definetly you introduced readers to world of DeFi in very smooth and easy-to-read way. Great job on that :)
ps. please do not take it as a criticism, but I think it would help you if you would work on improving your english. It's hard to hold readers attention if they end up struggling to understand.
Good luck with the challenge.
Yours, Piotr
This is an interesting comment. You compliment me for my easy-to-read post, then tell me to improve my english.
?
I have not found any programs that take STEEM or HIVE as collateral, if I do, I will surely write about it.
Happy to see you back and commenting, hope you are doing well during this continued pandemic.
Lol @metzli :)
You're right. I seem to contradict myself lol
stay safe
Hello dear friend, how have you been? I noticed your absence in our community, I left a message in your discord, I hope to contact you soon. Greetings and be well.