Random Blog on Crypto (Part 85) : How Crpto is used in DeFi Sector

engrsayful (80)modCOMMUNITY MODin Tron Fan Club • 23 hours ago

DeFi or Decentralized Finance is getting popularity for its wonderful features. Crypto is very important part of DeFi. DeFi is like new style of doing finance. It don’t use any banks or middle control. It only use blockchain and smart contract. In DeFi, people can do borrow and lend. They also can trade without limit. The platform is open for all. Just need wallet and internet. No need to give ID or document. Any people from any part of the world with internet connection can join the party. Crypto coins are the main assets in this finance sector. People lock their crypto into smart contract. These contract work by itself. No person need to run it. Just code and conditions will execute all transections. That’s why it is fast and more safe. People can lend coins and get interest. They can also take loan using crypto as deposit. Interest rate change by system rules. It depend on how much coin is in use. This give more freedom for users to handle money.

As the total system is decentralized so Staking is another part of DeFi. It means user hold coin for some time. They get reward for that. This help the network work well. Yield farming also used in DeFi. People move coin around to get best rewards. Peoples fund will be used for automatic execution of transection is the system. It need some idea and thinking. Liquidity pool is big part also. People put crypto in pool. Others trade from that pool. Pool owners get small fees. That keep system alive. Famous coins in DeFi are Ethereum, USDC and few others. Many apps are made on DeFi. Like wallet, exchange and platform to check earning. These tools are for everyone. DeFi try to give more power to normal peoples. It remove need of banks. Also help peoples in poor countries. Those peoples of several countries are in the restriction of government can still use crypto and transect them with the help of DeFi. DeFi is growing fast. New apps and tools coming. It can change whole money system. Crypto is the main player in this system as it is completely coin of digital format.