What is DeFi and how is it revolutionizing the financial sector with cryptocurrencies?

DeFi, or decentralized finance, is a movement that seeks to create an open, transparent, inclusive and intermediary-free financial system, using blockchain technology and cryptocurrencies. DeFi allows users to access financial services such as loans, savings, investments, insurance, payments and more, without depending on banks, companies or governments.

DeFi is based on the creation of protocols, applications and smart contracts that operate on public and permissioned blockchain networks, such as Ethereum, Binance Smart Chain, Solana, Cardano and others. These protocols, applications and smart contracts connect to each other, forming an interoperable and composable ecosystem, where users can interact with different financial services and products.

DeFi uses cryptocurrencies as a medium of exchange, store of value and collateral. Some of the most important cryptocurrencies in DeFi are:

- DAI: It is a stablecoin, that is, a cryptocurrency that maintains a stable value compared to another currency or asset. DAI is pegged to the US dollar, and is created by locking other cryptocurrencies as collateral in the MakerDAO protocol.

- UNI: It is the governance token of Uniswap, a decentralized exchange platform that allows users to exchange any cryptocurrency pair without intermediaries or commissions. UNI is used to participate in the management of the platform, access benefits and rewards, and provide liquidity to the market.

- AAVE: It is the native token of Aave, a decentralized lending platform that allows users to lend and borrow cryptocurrencies with variable or fixed interest rates. AAVE is used to participate in the security and governance of the platform, access discounts and rewards, and obtain privileges such as flash loan and liquid collateral.

These are just a few examples of the cryptocurrencies powering DeFi, but there are many more.

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