DeFi stands for decentralised finance and majority of these are build on ethereum blockchain. So what is DeFi and why it is so powerful and how it affects ethereum price.
A lot of decentralization in crypto world is a buzz up actually. Many are not decentralized so one need to do research. There are now starting to have DeFi project base on other blockchain like Tron blockchain.
Looking at the deFi space, one of the website to go to is Defipulse.com where you can see the market size etc. If you are interested, one of the most popular DeFi coin is Maker. If you want to take up a loan, you can put into cdp and take some money out as a loan and take interest.
One can borrow money, you can do it in the DeFi space. Most of the time it is over collaborated. You need to put money to take out money. You have to reach certain level of collaboration. If you go below that, you might have your loan liquidated. It is not like personal insecure loan. It is different from bank where they will see your credit check and ensure you are capable to pay back your loan.
There isn’t a universal credit score in the DeFi ecosystem yet. Rather than running somebody credit score, they made you put some money and if you didn’t pay loan back, they will take it away. You can borrow money, you can also supply money. If you want to earn interest, you can earn money using a pool and earn money back.
In addition, you can also trade on the DeFi space. Dydx allow you to do margin trading. This is among many others exchanges. Token sets is also getting hot. There is also with defi space is take a cool product that airswap bulid. A lot of different place to hop in to.
Loanscan.io is great which is an aggregator with different types of things you can do in the DeFi space. You can earn interest if you want to.
When comes to DeFi token, Yearn Finance is the one that sets the most pulse running. When it is officially launched on several main crypto-exchanges, the price ballooned from $32 per token in early August to $10,000 in late August 2020. At several instances, it got past $30,000 easily.
Yearn finance token is the brainchild of Andre Cronje, a South African who first created yEarn. Since then, the tokens he create has been gaining in popularity ever since with no slowing down.