DeFi Assets
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.
🗃️ Concepts
8 items
🗃️ Primitives
9 items
🗃️ Optimisers
2 items
🗃️ Protocols
8 items
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
Context
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.