What Is Decentralized Finance (DeFi)?
Decentralized finance—often called DeFi or open finance—refers to the economic paradigm shift enabled by decentralized technologies, particularly blockchain networks. From peer-to-peer payment systems to automated loans to USD-pegged stablecoins, DeFi has emerged as one of the most active sectors in the blockchain space, with a range of use cases for developers, individuals, and institutions.
What Are the Benefits of Decentralized Finance?
Decentralized finance leverages three key principles of the Ethereum blockchain to unlock liquidity and growth opportunities, increase financial security and transparency, and support an integrated and standardized economic system.
Highly programmable smart contracts automate execution and enable the creation of new financial instruments and digital assets.
Tamper-proof data coordination across a blockchain’s decentralized architecture increases security and auditability.
Ethereum’s composable software stack ensures that DeFi protocols and applications are built to integrate and complement one another.
On-Demand Webinar: The Future of Finance
This free webinar explores the macro financial and technological trends that are contributing to the exponential growth of digital assets and decentralized finance.
What Are the Use Cases for Decentralized Finance?
- Know Your Transaction (KYT) and Compliance. Similar to the process of verifying the identities of customers and counterparties (KYC), blockchain-based DeFi solutions now enable businesses to easily monitor, analyze, and verify transaction details to prevent fraud and meet regulatory requirements.
- DeFi Data and Analytics. Track the value locked in DeFi protocols, borrow and supply APRs, exchange volumes, and more with our comprehensive and customizable data platform.
- Token Utilization. Programmable “proof of use” standards for token networks align incentivizes during network launches and minimize passive speculation, ensuring that tokens end up in the hands of actual users.
- Eth2 Staking. Our staking-as-a-service platform helps qualified validators earn rewards and avoid penalties for attesting blocks on the Eth2 Beacon Chain.
Ethereum DeFi Report
Read our latest deep dive into the biggest trends in decentralized finance. What we cover: wrapped bitcoin, yield farming, security incidents, ETH insurance, and the performance of popular DeFi protocols like Compound, Uniswap, and MakerDAO.
Explore Our Suite of DeFi Products
Codefi is the blockchain operating system powering commerce and finance, built to optimize business processes and digitize financial instruments. Whether you're issuing tokens, managing payment transactions, or monitoring protocol risk, Codefi helps you easily access the full potential of exponential finance.
DeFi User Report
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2019 Was The Year of DeFi (and Why 2020 Will be Too)
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Connect With a Blockchain Expert Today
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