DeFi solutions are powered by blockchain technology and use its most powerful feature: programmable digital assets such as Bitcoin (BTC) and Ethereum (ETH). These digital assets have monetary value, mainly because of their value storage properties. Because these assets are programmable, we can lock them in smart contracts as collateral (similar to a home mortgage).
We can also do all sorts of interesting things with provably locked value. With this collateral, we can get loans in the form of so-called "stablecoins." A "stablecoin" is a digital currency whose value is pegged to a world currency like the dollar. We can exchange these stable assets for other digital assets, spend them on the internet, or lend them to lending protocols to earn interest. We can also do some more advanced things that are beyond the scope of financial products we know today.
The general meaning is that digital reserve assets are used to mortgage innovative financial products that are completely digital and non-intermediate. You can interact directly with the code anytime and anywhere without the need for an intermediary company, which is a representative transformation.
Through the above introduction, I believe everyone has already understood blockchain DeFi. In fact, blockchain DeFi also has some interesting features. DeFi is permissionless, which means that you do not need anyone's approval or permission to use these products, nor do you need to create an account anywhere, share a copy of your passport, or trust the bank that your money is really in the bank. Instead, you use your own cryptocurrency wallet to interact directly with the code. DeFi interactions are anonymous, instant, and can be started anytime, anywhere.
