# What is #DeFi?

By [Untitled](https://paragraph.com/@0x95e1b6ccfe24725c8be609c22ca73e2bf46eaf38) · 2023-03-29

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1\\🧵Do you know what #DeFi is in general?

#DeFi is a financial instrument in the form of services and applications created on the blockchain.

![](https://storage.googleapis.com/papyrus_images/52b076f21004a187e2ba67c97456568c18ea379fc6d4e37e6a86e2df5eb098ae.jpg)

2\\🧵So what's the point of #DeFi?

The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open-source protocols.

3\\🧵 What #DeFi consist of?⬇️

*   Blockchain
    
*   Digital assets
    
*   Wallets
    
*   Smart contracts
    
*   Dapps
    
*   Stablecoins
    

And it's only in general...👀

![](https://storage.googleapis.com/papyrus_images/cdac8c40278cd049107b275b2dcdeab6f16a8329d32cfe228b56ea98a9c82e6b.png)

4\\🧵 If #DeFi is so cool, what are its advantages?

*   Decentralization
    
*   Lack of human factor
    
*   Transparency
    
*   Inclusivity
    
*   Cross-border

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*Originally published on [Untitled](https://paragraph.com/@0x95e1b6ccfe24725c8be609c22ca73e2bf46eaf38/what-is-defi)*