Decentralised Finance (DeFi) is the future of financial markets. Using smart contracts, this area enables digital financial services and is no longer dependent on traditional financial service providers.

What is DeFi?

DeFi stands for Decentralized Finance. DeFi transfers traditional financial products into the decentralized world of blockchain technology and cryptocurrencies.

DeFi follows the peer-to-peer idea of the first cryptocurrency, Bitcoin: on decentralized financial markets, market participants can trade directly with each other or lend money to each other without the intermediation of a central institution such as a bank.

The DeFi transactions are automated through so-called “smart contracts”. These “intelligent contracts” are, in simplified terms, computer programs that execute themselves as soon as certain conditions are met.