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DeFi Assets

Diagram

DeFi is a term used to describe a variety of onchain applications that are geared toward disrupting traditional financial services.

Transparent logic defines how transactions are processed while Off-chain services provide necessary data and triggers to apply those trading rules.

  • TradFi has transactions processed by a central authority governed by human processes.
  • DeFi automates the transaction settlement process with minimal human intervention.
  • DeFi logic is transparent, meaning everyone can see how a transaction will be processed.

Benefits​

Some of the key attractions of DeFi for many consumers are:

  • Eliminates the fees that banks and other financial companies charge for using their services
  • Control your money in a secure digital wallet instead of needing a bank
  • Anyone with an internet connection can use it without needing approval
  • You can transfer funds in seconds and minutes

Schema​

Ecosystem​

Components and concepts of the DeFi ecosystem:

  • Assets: The item/thing which is being traded, usually represented in the form of a token.
  • Primitives: The building blocks of the DeFi ecosystem whereby each protocol offers a specific financial function.
  • Wallets: User owned wallets stores and manage the private keys of the user. These self-custodial wallets enable signing of transactions as well as user interaction with the DeFi protocols.
  • Optimisers: are a set of applications which build on top of DeFi primitives in order to maximise returns through implementing specific strategies.
  • Oracles: Data providers that enable DeFi protocols to ingest external data for logic processing within their smart contracts.
  • Cross-Chain Bridges: Protocols that enable assets to be securely moved across various chains.
  • Transaction Settlement: The base layer for DeFi where all transactions are finalised and secured.

Analysis Tools​

Products that help you invest in DeFi.