I’ve been reading about DeFi lately, but I’m having some trouble understanding what DeFi platforms actually are. I understand that DeFi stands for “Decentralized Finance,” and its basic function is to remove intermediaries such as banks in financial transactions. But beyond that, I’m finding it a bit hard to wrap my head around the concept. What exactly are these DeFi platforms?
Moreover, I am curious about how these platforms operate and what distinguishes them from traditional financial systems. Are the functions and operations of these platforms only limited to cryptocurrency transactions, lending, and borrowing? Or do DeFi platforms cover a broader range of financial services as well?
Lastly, could anyone provide examples of popular DeFi platforms along with an explanation of how they function? Understanding the practical applications and functionality of these platforms will greatly further my knowledge on this subject. I’d also like to know about the potential risks and rewards associated with using these platforms. I’m interested in investing in DeFi, but I want to make an informed decision before I jump into it.