traditional financial systems; It is based on being managed through banks and arbitrators. Users always make transactions depending on the intermediaries and benefit from financial services. Decentralized Finance is an ecosystem where reliable and independent financial transactions can be made without depending on banks, countries, companies or arbitrators.

What is Decentralized Finance (DeFi)? Decentralized Finance, also known as DeFi, is financial applications built on blockchain networks that can operate independently of any authority. Decentralized Finance aims to create a permissionless, accessible and transparent financial service ecosystem. Users here can have easy access to the financial service and hold all their assets. It interacts with other users via P2P (peer to peer) and Dapp (decentralized application). Decentralized Finance works on blockchain networks.

What are the Advantages of Decentralized Finance (DeFi)? The financial markets that have existed until now, which we can call traditional, are financial markets managed by arbitrators established through banks. DeFi, on the other hand, is an application that eliminates intermediaries and arbitrators. But that doesn't mean it isn't legitimate or legal. Decentralized Finance determines how the problems between users will be solved with mathematical codes and the funds control of the users is completely in their own hands. Thus, users can benefit from financial services with less expense while making transactions in a secure environment.

Another advantage of the system is that it offers ease of access and leaves the door open to those who cannot access financial services by other means. Since the financial systems that existed until this time were aimed at making a profit for the intermediaries, namely the banks, they did not need to provide services in low-income groups. However, it is possible for anyone with internet access to this system, which is built on mobile networks. The low costs also pave the way for everyone to benefit from financial services.

What are the Disadvantages of Decentralized Finance (DeFi)? The disadvantages of DeFi application can be listed as follows:

Risk of user error: Since there is no intermediary institution in the Decentralized Finance system, the responsibility lies with the users. In addition, the products are configured on the blockchain and cannot be changed. For these reasons, user error is a risky situation for Decentralized Finance.

The challenge of making the best choice: Decentralized Finance has a dispersed ecosystem and users struggle to find the app for a particular need. For this reason, it is more difficult for them to make the best choice for themselves compared to other financial systems.

Poor performance: Decentralized Finance applications are slower than central units because they are built on a blockchain network. To improve limited performance, developers need to better optimize apps.

Bad experience: It is a system that requires extra experience. For this reason, users try harder than necessary and have difficulty adapting.

What are the Uses of Decentralized Finance (DeFi)? DeFi can be used in many ways.

Borrowing and lending: It is the most frequently used application type. Users can collateralize their digital assets, close transactions openly, and are not subject to procedures such as credit checks.

Monetary Banking Services: Monetary banking services such as issuance of stable coins, insurance and mortgages are provided. Users can opt for stable coins instead of coins whose value changes frequently. You can get a mortgage loan with lower costs and shorter procedures. At the same time, it can benefit from the insurance service by dividing the risk with the participants, without the need for an intermediary institution.

Decentralized Marketplace: With the decentralized exchange, users can buy and sell digital assets without intermediaries, with lower transaction fees.

traditional financial systems; It is based on being managed through banks and arbitrators. Users always make transactions depending on the intermediaries and benefit from financial services. Decentralized Finance is an ecosystem where reliable and independent financial transactions can be made without depending on banks, countries, companies or arbitrators.

What is Decentralized Finance (DeFi)? Decentralized Finance, also known as DeFi, is financial applications built on blockchain networks that can operate independently of any authority. Decentralized Finance aims to create a permissionless, accessible and transparent financial service ecosystem. Users here can have easy access to the financial service and hold all their assets. It interacts with other users via P2P (peer to peer) and Dapp (decentralized application). Decentralized Finance works on blockchain networks.

What are the Advantages of Decentralized Finance (DeFi)? The financial markets that have existed until now, which we can call traditional, are financial markets managed by arbitrators established through banks. DeFi, on the other hand, is an application that eliminates intermediaries and arbitrators. But that doesn't mean it isn't legitimate or legal. Decentralized Finance determines how the problems between users will be solved with mathematical codes and the funds control of the users is completely in their own hands. Thus, users can benefit from financial services with less expense while making transactions in a secure environment.

Another advantage of the system is that it offers ease of access and leaves the door open to those who cannot access financial services by other means. Since the financial systems that existed until this time were aimed at making a profit for the intermediaries, namely the banks, they did not need to provide services in low-income groups. However, it is possible for anyone with internet access to this system, which is built on mobile networks. The low costs also pave the way for everyone to benefit from financial services.

What are the Disadvantages of Decentralized Finance (DeFi)? The disadvantages of DeFi application can be listed as follows:

Risk of user error: Since there is no intermediary institution in the Decentralized Finance system, the responsibility lies with the users. In addition, the products are configured on the blockchain and cannot be changed. For these reasons, user error is a risky situation for Decentralized Finance.

The challenge of making the best choice: Decentralized Finance has a dispersed ecosystem and users struggle to find the app for a particular need. For this reason, it is more difficult for them to make the best choice for themselves compared to other financial systems.

Poor performance: Decentralized Finance applications are slower than central units because they are built on a blockchain network. To improve limited performance, developers need to better optimize apps.

Bad experience: It is a system that requires extra experience. For this reason, users try harder than necessary and have difficulty adapting.

What are the Uses of Decentralized Finance (DeFi)? DeFi can be used in many ways.

Borrowing and lending: It is the most frequently used application type. Users can collateralize their digital assets, close transactions openly, and are not subject to procedures such as credit checks.

Monetary Banking Services: Monetary banking services such as issuance of stable coins, insurance and mortgages are provided. Users can opt for stable coins instead of coins whose value changes frequently. You can get a mortgage loan with lower costs and shorter procedures. At the same time, it can benefit from the insurance service by dividing the risk with the participants, without the need for an intermediary institution.

Decentralized Marketplace: With the decentralized exchange, users can buy and sell digital assets without intermediaries, with lower transaction fees.