A Brief Understanding of DeFi
Hey Lydians!
So we are going to start a series of simple educational posts on the topic of DeFi and it’s features. So of course we need to start from the very beginning. In the early days of DeFi the first DEX’s that were available were a nightmare to use. Compared to today, DeFi has come a long way in terms of capabilities and usability.
Where did DeFi start?
If you do some research most people seem to agree that DeFi started with MakerDAO. MakerDAO was formed in 2014 and on December 18, 2017, Dai and its smart contracts were launched on the Ethereum network. Although I think many of us didn’t realize at the time that this was just the start of a massive ecosystem that was ready to take over.
After that we started to hear a lot about different DEX (Decentralized Exchange) projects starting up. The first few were kind of rough of course and didn’t really gain much traction until the DeFi summer in 2021 kicked off. That was when everything changed and people really saw the potential of DeFi as new and innovative projects were popping up left and right.
But what is DeFi?
Decentralized Finance. As the name implies, is just finance features that are completley decentralized. So think lending, borrowing, trading, leverage ect. Creating platforms for people to freely use these features without making accounts or having to give up their personal information ect.
Why is this important?
Well as you might have noticed in some countries people can’t get access to certain platforms to trade tokens. Also in a larger view, some people don’t even have access to banks where they live. So being able to provide these features to people no matter where they are is huge. Some people also live in a country where the government isn’t friendly towards crypto at all so they will rely on decentralized platforms for trading.
DeFi, in essence, aims to provide more power and control over your own finances instead of entirely entrusting it to other centralized parties and middlemen. Defi platforms can enable the average person to invest and save with lucrative potential when compared to conventional bank and credit union methods by providing more appealing APRs, incentives, control over your funds, and most importantly transparency.
About Lydia Finance
Lydia Finance is an Automated Market Maker, Yield Farming, Staking, and Launchpad platform on Avalanche.
Their rich UI and comprehensive documentation/tutorials allow every level of user to invest in DeFi and maximize their earnings by taking advantage of Avalanche’s lightning-fast infrastructure with very low gas costs.
Trade, stake, pool, and earn $LYD and many other token utilities all on Lydia Finance.
