You hear about DeFi, but you don’t know what it is? Here’s the essentials:
💸 What is it?
DeFi = Decentralized Finance.
Financial services without banks or intermediaries, on the blockchain via smart contracts. Borrowing, lending, exchanging, staking… everything is done directly, peer-to-peer.
🏦 Differences with traditional finance:
• No bank, no paperwork: you use a wallet.
• Open 24/7: no branch closing.
• Ultra transparent: every transaction is public.
• Code is law: it’s the smart contracts that manage everything.
📱 Examples:
• Exchange cryptos (DEX): token swap without a centralized platform.
• Lend tokens (Aave, Compound): you deposit cryptos in a pool and earn interest.
• Borrow against crypto collateral: you lock a collateral and get stablecoins.
• Provide liquidity: you put a pair of tokens in a pool and receive a share of the fees.
🧠 Why is it useful?
• Total control: you manage your keys, no blocking by a third party.
• Potential returns: your money works for you.
• Open ecosystem: anyone can participate or create a protocol.
⚠️ Attention:
• No guarantees: variable returns.
• Hacks and scams possible: DYOR (do your own research).
• You are responsible for your funds: no “customer support” if you lose your private key.
🚀 And @ionet in all this?
io.net is a decentralized infrastructure that powers DeFi and AI.
• Staking $IO / co-staking: you support the GPU network and earn rewards.
• Bridge between DeFi, computing, and AI: io.net provides decentralized GPU power to train AI models or secure protocols.
✨ In summary:
DeFi is finance without intermediaries, transparent and accessible 24/7.
@ionet shows how DeFi, AI, and computing combine to build Web3.