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     5 years ago 

    I'm still trying to understand DeFi @juanmolina

    I've read post about DeFi by @hash-tag ( https://hive.blog/hive-175254/@hash-tag/what-is-defi-and-how-is-it-different-from-traditional-finance-is-it-another-scam-that-i-should-know-about) and it got me so interested. I'm still not sure how does it work. It seem that DeFi allows to "borrow" fiat currency and use crypto as a collateral?

    Cheers,
    Piotr

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       5 years ago 

      DeFi allows you to do many things. Broadly speaking, there are two main aspects:

      • Recreate traditional financial operations, but with the implementation of crypto.
      • Create new financial instruments, based on crypto.

      As you can see, it is a totally disruptive new technology.

      An example that I always include:
      The Spanish financial group "Santander" is one of the pioneering banks in the foray into DeFi. In 2019 they used the Ethereum platform for the liquidation of the interests of a trust bond of 20 million dollars.
      Here is the link for you to learn about it:

      https://cointelegraph.com/news/santander-redeems-20m-bond-using-ethereum-blockchain?_ga=2.210247893.1960222452.1593710805-1353565757.1592980920

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