What is behind the buzz about “decentralized finance”?
Decentralized finance (DeFi) has a lot of buzz for several different reasons. Each of these reasons are exciting and could generate a large amount of “buzz” by themselves.
- DeFi startups. This is quite similar to the ICO startups in 2017 except that you do not buy the tokens directly from the startup website; you buy them off decentralized exchanges like Uniswap. Buying new DeFi tokens has made many people a LOT of money just like the 2017 ICO boom did.
- DeFi passive income. There are a variety of ways to gain passive income using DeFi. This includes providing liquidity on sites like Uniswap or Sushiswap, lending crypto on Compound, and various other staking and farming services. These interest rates are often north of 8% which is quite amazing.
- Variety of DeFi services. Besides gaining passive income you can also borrow cryptocurrency, exchange cryptocurrencies, gain insurance services and a variety of other crypto financial services.
DeFi offers exciting new potential for cryptocurrency users. If you are interested in purchasing DeFi tokens or utilizing various DeFi services like Sushiswap or Compound, which makes DeFi easy especially for those new to cryptocurrency.