DeFi or Decentralized Finance is a new financial system, which is more open, transparent, and does not require a third party as an intermediary in conducting transactions. DeFi is designed using protocols, crypto assets, smart contracts, and Dapps or Decentralized Applications built on a blockchain network.
Today, Decentralized Finance can be a global alternative for any financial service in use. Despite being openly accessible, users retain full control over their assets. This is done using Dapps and programs specifically designed to support the fulfillment of the financial ecosystem, such as deposits and loans like banks.
Dapps also allow users to create stablecoins, lend crypto assets, and earn interest on crypto assets pledged or borrowed to implement advanced and automated investment strategies.
The main advantage of DeFi is that it does not have an intermediary to make transactions, like traditional banks; the service has no operating hours, because it is built on a blockchain that can be accessed at any time easily; and also reduce costs and time efficiency by not using intermediaries!
Based on data from DeFiPulse in August 2020, the cumulative valuation of crypto assets stored in the DeFi sector reached US$1.85 billion distributed across 30 DeFi applications, from Compound to Connext. All of them compete for a large number of users with crypto assets as collateral.
The top three DeFi also available on Indodax are Compound (US$629.8 million), Maker (US$557.9 million) and Synthetic (US$319 million). These three DeFi continue to compete every day. Not only that, there are also several other crypto assets that are no less interesting to follow, such as Yearn Finance, Chainlink, Aave, 0x, and DAI which are also competing in the DeFi ecosystem.