What is a money Lego?

Money Lego are tech stacks that allow different applications to fit (or be shoved) into other projects. For example, you can deposit ether (ETH) into MakerDAO, receive the stablecoin dai (DAI) and then lend it on Compound to a trader in order to earn the network’s governance token COMP.

How does DeFi crypto work?

Decentralised finance, or DeFi for short, is a system in which customers can access financial products directly on a decentralised blockchain network, without the need for middlemen such as banks and brokerages.

Which decentralized finance DeFi projects are currently the most promising?

Top 5 DeFi Projects/Tokens by CoinMarketCap to Watch in 2021

• #1. Colony Lab: Best De-Fi Project on Avalanche Blockchain.
• #2. Aave: Decentralized Finance Platform Showing Liquidity Protocol.
• #3. Fantom: Digital Assets, dApps, & Smart Contracts.
• #4. PancakeSwap: Most Popular Decentralized Platform.
• #5.

What is Defi (decentralized finance)?

DeFi, which is short for Decentralized Finance, is a term for different decentralized financial services. It being decentralized means that these services have no central authority guiding them. These decentralized financial services are meant to replace the current centralized financial system.

What is defi and how does it work?

One of the most unique parts of DeFi is its constituent smart contracts, which power everything from programmable digital assets to decentralized applications (DApps). Smart contracts are publicly accessible and highly interoperable. So like Lego pieces, projects in DeFi can easily connect together to create powerful new innovations.

What is a decentralized exchange (DEX)?

Decentralized exchanges, or DEXes for short, are smart contracts that allow users to buy, sell, or trade cryptocurrencies or tokens. Because they run on the Ethereum blockchain, these exchanges operate without a central authority.

What is centralized finance (CEFI)?

There’s always a person, a team, or even a company that oversees their affairs. Thus, they are rightly referred to as CeFi (Centralized Finance). CeFi has the risk of fraud, funds mismanagement, embezzlement, etc., associated with it. But can there be a solution to all these risks?