DEFI VS REFI
July 14th, 2023

DeFi (Decentralized Finance):

DeFi is a way of using blockchain technology and smart contracts to create decentralized financial systems and services. The intent is to eradicate intermediaries like banks and brokers so that users can interact directly with the platforms and protocols. These applications are usually on public blockchains, like Ethereum, and provide many financial services, such as lending and borrowing, decentralized exchanges, stablecoins, yield farming, and more. DeFi projects are accessible to anyone with an internet connection without needing the approval or participation of centralized authorities.

ReFi (Refinancing):

ReFi, short for refinancing, is common in traditional banking and loans. It refers to replacing an existing financial arrangement with a new one to obtain better terms or interest rates. Refinancing is usually associated with mortgages, auto loans, or student loans. Its purpose is to help borrowers reduce interest rates, lower monthly payments, extend loan duration or modify other loan terms to better fit their financial situation. The process generally requires assessing the borrower’s creditworthiness and approving the new loan based on their financial history and current circumstances.

What is centralized finance?

CeFi is an approach within the cryptocurrency market to handle the purchase, sale and trading of cryptocurrency tokens through a central exchange

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