DeFi stands for Decentralized Finance, also known as Open Finance, and almost all DeFi projects are currently conducted on the Ether blockchain.

Ether is a global open source platform for decentralized applications. On Ether, it is possible to manage digital assets and run programs by writing code without geographical restrictions. The cryptocurrency it produces is called Ether (ETH).

DeFi is a series of financial applications developed on an open decentralized platform, where the entire business process is an on-chain interaction.

Compared with traditional finance, DeFi is more open and inclusive: first, DeFi does not rely on any centralized entity to provide credit intermediation or endorsement; second, there are no access restrictions, i.e., anyone with an Internet connection can enter; third, no third party can block any transaction or reverse any transaction.

DeFi and traditional finance are two different tracks and cannot be compared. DeFi has nothing to do with the real economy, nor with legal tender, but mainly with the cryptocurrency sector.

A bitcoin miner, for example, produces bitcoins and needs to buy a miner with fiat currency or pay for electricity to hire someone, usually mines bitcoins and sells them, but in a better market situation may not want to sell them, and the miner can then make an over-collateralization based on bitcoins in an application like Compound, lending out stablecoins for RMB to meet his payment needs. A so-called stablecoin is a cryptocurrency that is pegged to another asset (e.g. gold, US dollars, another cryptocurrency, etc.).

DeFi is similar to Lego blocks in that it takes some basic financial modules and has different smart contracts to implement them. Then by calling each other between these smart contracts, some financial functions are put together, "someone to provide lending like Compound, someone to provide a decentralized exchange, and someone to provide a mechanism to monitor collateral adequacy."

Take MakerDAO, an automated mortgage platform among lending platforms, for example. Founded in 2014, MakerDAO pledges users' digital assets through smart contracts and then lends them the same amount of stablecoin Dai. and it uses a dual-coin model, producing stablecoin Dai, the form in which users eventually borrow assets, on the one hand, and also offering equity tokens and managed tokens MKR, which is used to pay interest when redeeming collateralized cryptocurrencies.

DeFi stands for Decentralized Finance, also known as Open Finance, and almost all DeFi projects are currently conducted on the Ether blockchain.

Ether is a global open source platform for decentralized applications. On Ether, it is possible to manage digital assets and run programs by writing code without geographical restrictions. The cryptocurrency it produces is called Ether (ETH).

DeFi is a series of financial applications developed on an open decentralized platform, where the entire business process is an on-chain interaction.

Compared with traditional finance, DeFi is more open and inclusive: first, DeFi does not rely on any centralized entity to provide credit intermediation or endorsement; second, there are no access restrictions, i.e., anyone with an Internet connection can enter; third, no third party can block any transaction or reverse any transaction.

DeFi and traditional finance are two different tracks and cannot be compared. DeFi has nothing to do with the real economy, nor with legal tender, but mainly with the cryptocurrency sector.

A bitcoin miner, for example, produces bitcoins and needs to buy a miner with fiat currency or pay for electricity to hire someone, usually mines bitcoins and sells them, but in a better market situation may not want to sell them, and the miner can then make an over-collateralization based on bitcoins in an application like Compound, lending out stablecoins for RMB to meet his payment needs. A so-called stablecoin is a cryptocurrency that is pegged to another asset (e.g. gold, US dollars, another cryptocurrency, etc.).

DeFi is similar to Lego blocks in that it takes some basic financial modules and has different smart contracts to implement them. Then by calling each other between these smart contracts, some financial functions are put together, "someone to provide lending like Compound, someone to provide a decentralized exchange, and someone to provide a mechanism to monitor collateral adequacy."

Take MakerDAO, an automated mortgage platform among lending platforms, for example. Founded in 2014, MakerDAO pledges users' digital assets through smart contracts and then lends them the same amount of stablecoin Dai. and it uses a dual-coin model, producing stablecoin Dai, the form in which users eventually borrow assets, on the one hand, and also offering equity tokens and managed tokens MKR, which is used to pay interest when redeeming collateralized cryptocurrencies.