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How to demystify DeFi

Published 02/02/2023, 08:00 AM
Updated 02/02/2023, 02:20 PM

Although the learning curve for using decentralized finance (DeFi) is steeper than with centralized exchanges, DeFi and its use of immutable smart contracts open up prospects for a more inclusive world. But how can we navigate the core functions of DeFi, use them effectively and profit?

Lending and borrowing

Emerging in 2017 with the launch of MakerDAO, decentralized lending and borrowing platforms are the historical first stone of DeFi.

Decentralized exchanges (DEXs)

Derivatives and leverage

Arbitration, slippage and impermanent loss

Liquidation

Flash crashes and flash loans

Lego money

Democratization and yield farming

The new economy


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