What are the benefits of DeFi? ๐ฝ
๐ธ Real-time transactions and increased transparency Interest rates on DeFi are updated several times a minute
๐ธ Increased overview of transactions with account activity that can be noted publicly and verified by other users
๐ธ Save money with low transaction costs and other traditional costs and fees in financial services
๐ธ Receive interest faster compared to traditional financial institutions, such as banks, which provide these on a monthly basis
๐ธ Store peer smart contracts between parties on a public database on the blockchain that is only closed when the terms of the digital agreement are met
๐ธ Programmed smart contracts that ensure automatic execution of terms and conditions. The agreement can, for example, be programmed so that it will automatically release the security when the conditions for the contract are met
๐ธ Build your programs in DeFi as it is open source. Users who want to review and edit the source's code do not need special approvals.
What are the disadvantages of DeFi? ๐ฝ
๐ธ The fear that funds will be lost or locked in the system
๐ธ Hacking is a serious threat, as sophisticated hackers can discover the weaknesses and break into the system
๐ธErrors in the system can occur if there are bugs or error codes in the blockchain's programming
๐ธ To secure your account, unique codes are required as private keys, which means that you can lose access to your money if you lose it
๐ธ Falling values of crypto assets used as collateral may result in position being liquidated2.
