One benefit that I noticed that wasn’t mentioned in the video is that all of this is still anonymous. In CeFi, it doesn’t matter how many different accounts you have or where they are based, the governments still know who you are. With DeFi, this isn’t the case as we can use our wallets & connect them to any various DeFi exchange we would like.
Complete control of your money/ability to transact - custodial rights, dao access to vote (unless the dao is overtaken by a select person or persons) on governance and potentially more that add up to complete control. But maybe that is also a disadvantage.
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Transparency: DeFi platforms are built on transparent and open-source protocols, which can make it easier for users to understand how their funds are being used and to verify that the platform is operating fairly.
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Security: DeFi protocols often use decentralized networks, which can make them more secure and resistant to single points of failure.
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Inclusion: DeFi protocols can potentially enable people who are unbanked or underbanked to access financial services, such as loans and investments, that may not be available to them through traditional financial institutions.
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So many positive advantages using Defi compared to what we have been born into. Thanks for sharing.
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One major benefit of the DeFi space is that the majority of interest created by liquidity pools goes back to the lenders.
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On DeFi there is less bureaucracy. Banks makes you to go through a lot of paperwork and complications.
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- no middle-man
- u cant break terms of an smart contract used in DeFi
trustless, being able to manage your own funds, immutability
To be your own bank and transact 24/7 with defi contracts for yield or convert your tokens
High APY is great and especially when you DYOR and you do not need any financial advisor that takes a hig cutt of a comission and sometimes they can put your funds somewhere not where it is best for you, but the best for their one time comission in which I beieve is often happening.
1.) 100% custody as well as responsibility over your own assets.
2.) Only you are responsible for DYOR and your money is what’s going on so Iam personally more likely to learn and study in this field as it makes sence to me.
3.) Having the confidence to see that these funds are 100% there and if you’re knowledgeable enough you can verify yourself and see where everything went and what’s the amount remaining (imagine something like this being implemented when countries receiving covid rescue packages) and each state’s citizens after logging in by their unique digital ID adress could see how is their government spending.
4.) Higher APY than everywhere else in centraized banking entities.
DeFi could cut out middle men such as Meta that sells your data. Could also make sure artists are getting a fair cut, and not Spotify earning all the money.
(1) Defi empowers the movement of capital freely across the internet in a manner that super charges capital formation and capital growth using new pools of liquidity and value transfers.
(2) Automation of intermediary functions, no middlemen, peer to peer transaction enablement.
Yes, freedom for the good of humanity.
Some other benefits to DeFi is an increase access to financial services and improved liquidity.
Another benefit to DeFi is an increased access to global markets and the ability to create financial instruments.
-Open 24/7/365 days
-Borderless: able to sell products and entities to another country
Transparency of record of transactions, where your money is going. That way banks/ governments can alter transactions
Trustless: Trust the network not companies
Yes, when you give people the tools to create their own financial path to capture value and be rewarded with their services instead of banks taking the majority of the profits from user’s.
- Trustless
- No middle man
- Private
- Permissionless
As an additional benefit, I would add the possibility to do whatever you want with your investments whenever you like. You can decide to buy or sell and do it immediately, without going through a third party.
I would also add transparency as a huge benefit. While banks do a lot of shenanigans and nothing is public, with DeFi you can check how protocols work and be sure of where the yields are coming from. You can also be certain that no money is created out of thin air.