#CPIWatch DeFi
DeFi, short for "Decentralized Finance", is a financial system built on blockchain technology aimed at removing intermediaries such as banks and financial institutions from transactions.
Instead of relying on centralized parties, DeFi uses smart contracts on networks like Ethereum to provide financial services including lending, borrowing, trading, and asset management.
DeFi platforms enable users to earn interest on cryptocurrencies or obtain loans without the need for traditional approval. Additionally, anyone with an internet connection can use these services directly.
The main advantages of DeFi are transparency, freedom, and lower costs. However, it carries risks such as hacks and lack of regulation.
In short, DeFi represents a revolution in the financial world, opening the door to an open, fair, and globally accessible financial system without traditional constraints.
