An Open And Permissionless Financial System For Everyone
Decentralized Finance, more commonly referred to as DeFi, was conceived as a more fair, transparent, and equitable alternative to the traditional financial (tradFi) system. In the DeFi paradigm, you always have ownership and control over your own finances without the need for a centralized entity to custody your assets. In other words, you can trade, borrow, save, and functionally achieve almost all tradFi offerings without ever having to trust an intermediary to handle your assets.
The term DeFi was coined as a play on the word "defy" as in to kickstart a financial autonomy revolution against tradFi systems which tended to be opaque and held back by decade-old systems and processes. Critically, there was no space for intermediaries in this conception of DeFi as the incentives when it came to handling other people's money naturally collided against the core values of DeFi (i.e. as an intermediary, you can earn more money if your clients know less and trust you to execute the trade in their best interest). Without an intermediary to conduct the trades, the community could only fall back on good old reliable math implemented via transparent, innovative, and incorruptible code.
The sections below builds upon these foundations and offers you a view into how far DeFi has evolved in the short period since the movement started. While the ideas behind the movement are as old as time, technological innovation is finally providing us a practical glimpse as to what this future would look like.
If the above has caught your attention and you would like to deep dive further into DeFi, you can checkout other valuable resources which will aid you in your DeFi journey.