Decentralized Finance (DeFi)
By CoinGecko | Updated on Mar 03, 2020
Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
DeFi applications cover many use cases and a few popular ones are stablecoins, lending/borrowing and trading (decentralized excanges). By removing the middleman in systems, DeFi applications are able to achieve a better rate of returns for its users, while lowering barrier of entry as the application does not discriminate or censor any particular party from joining.
Related Terms
Fear of Missing Out (FOMO)
Refers to the feeling of apprehension for missing out on a potentially profitable investment opportunity and regretting it later.
Generally an expression describing investors' fear of missing out the good timing of buying cryptocurrencies that could eventually be profitable
Cold Storage
Offline storage of cryptocurrencies which is arguably safer as they also require physical access (eg. hardware wallet, paper wallets)
Ethereum Virtual Machine (EVM)
Ethereum Virtual Machine (EVM) is the environment in which all smart contracts are executed.
Dump
A common term used to describe downward market movement, or to describe the action of selling an individuals holdings.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.