Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
You’ve heard about DeFi, you’ve seen crazy valuations thrown around, you heard rags to riches stories and you wonder what the hype is all about and how promising this sector is.
We’ve already covered DeFi in a previous journal but we’ll do a quick recap right here.
The financial products and services that we all use: exchanges, banks, savings accounts, loans, mutual funds etc, are all centralised processes. A few problems arise from centralisation mainly linked to corruption and unfairness, how many times have you heard of banks closing down accounts or rejected loans for unfair reasons?
If this process was governed by code, these problems would theoretically fade away leaving room for a fairer financial sector. This is what decentralised finance is here to offer.