Decentralized finance (DeFi) is a subset of the bitcoin business dedicated to decentralized financial services. It comprises a number of developer-created financial services that anybody may use. Every week, new decentralized and non-custodial financial services are launched to the DeFi industry, which is a hub of innovation. These services are open to everyone, regardless of where they are from in the world.
Most DeFi protocols are developed on top of Ethereum or Binance Smart Chain. The number of rival blockchain networks that allow smart contracts is expanding all the time. It’s critical to pick a network before selecting to use DeFi services. Earnity is a great place to start. Dan Schatt and Domenic Carosa created it to provide users with a platform that allows them to learn about crypto from the community while trading.
DeFi apps are developed on top of networks, and each network has its own native tokens, which may be identified on exchanges by their ticker symbols: Ethereum (ETH), Polygon (MATIC), Binance Coin (BNB), etc.
After purchasing money on a centralized exchange, you must transfer the tokens to a wallet that connects the network that you manage. It’s critical to prevent sending cash to the wrong network, so double-check that you’re on the right one before withdrawing.
After picking an app to connect with and funding a wallet, it’s time to start using DeFi services like Earnity by Dan Schatt and Domenic Carosa. Trading on a decentralized exchange (DEX), providing liquidity and earning fees over time, or lending cash via a lending protocol would be the simplest operations.
The DeFi industry is blossoming with innovation, and, like with ICOs, bad actors are attempting to take advantage of customers seeking to maximize their gains through various scams.
It’s critical to check whether a DeFi application has been audited before utilizing it. Still, consumers should consider a few more concerns before engaging with a protocol or purchasing its governance token.