DeFi Benefits - Assignment

DeFi 101 Course 2021
#41

DEFI Benefits

No need to give trust away, you only need to verify

Creative - Due to the Blockchains are Open Source, everyone can create new ideas or innovate previous ideas thus boosting the network value and by consequence the value of all the Assets

#42

I agree with you Padma-suta.

Community is one the most essential part of the crypto space if not the imperative component of this space. I have been here, for not to long but no to short time, and one of the thing I could see is that if they have community the can do extraordinary things
#43

No middlemanā€¦peer to peer financeā€¦more money stays in the hands of the endusersā€¦much lower fees

#44

The wallet can be used to store multiple cryptocurrencies and be used in any country

#45

Hi Carlos,

Totally agree with u bro! This is what we need to gain our freedom back from the bankers

#46
  • Gives the user complete control over there assets.
  • gives the user a wide range of access to financial service to just limited to the elite or super rich
  • Defiā€™s transparency and ability to real time audit protocols and funds, allows opportunity to end monopoly and corruption
#47

I believe that almost all of the comments above run under the 3 main categories in the course.

The possibility to become our own banks comes with bigger responsibility in knowing what we are doing, the education is a must-have and for sure there will be some people that would not want to get out of their comfort zones for various different reasons. However, having the freedom to choose is liberating.

2 Likes
#48

I think a significant benefit is being able to manage risk by using different DeFi protocols to earn yield without having to centralize your funds all in one place. This allows the opportunity to earn yield that can outpace increasing inflation, which is another huge benefit.

1 Like
#49

Decentralized finance allows you to spread your wealth amongst many different liquidity pools, all with varying APYā€™s and associated risk factors. In other words, depending on your risk aversion, you will at the very least be able to receive higher interest yields than anything available in traditional financing - and at times, yields that greatly surpass even that.

1 Like
#50

I think itā€™s great that because of the safety mechanism and transparency built into any given DeFi protocol, you can loan to individuals you donā€™t even know because you donā€™t actually need to trust them! Great point, Alexia!

1 Like
#51

@ryandsy Thatā€™s a great point. The ability to tailor your wealth distribution to your own personal risk appetite will be useful for many.

I would say there are privacy benefits as well. The bank stores so much of your personal information. The recent trend is recording your voice for authorization. I suppose centralized crypto exchanges are so much worse and usually scan your whole face.

1 Like
#52

opensource - you can check by yourself and then trust it

#53

*Transparency
*Non discriminatory
*Permissionless

Once familiar with your protocol of choice the user experience is very satisfying and rewarding.

1 Like
#54

One benefit I like most about DeFi I would call objectivity - a smart contract does not care from which account a transaction comes from. Once it is on the public blockchain - anyone can use it in a transaction and it just executes the code in a predictable way. You do not need to have a special job, a special license, a special software, need to be part of a special social circle, etc.

Very similar to how th author of the Hackerā€™s Manifestos described the objectivity of a computer:
ā€œI made a discovery today. I found a computer. Wait a second, this is
cool. It does what I want it to. If it makes a mistake, itā€™s because I
screwed it up. Not because it doesnā€™t like meā€¦ Or feels threatened by meā€¦ Or thinks Iā€™m a smart assā€¦ā€

1 Like
#55

Digital Peer2Peer transactions without middlemen

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#56

Come up with one more benefit and share it in the forum. Then respond to at least one other benefit from another community member.

Transparent
Trustless
Permissionless
No middle man
Accessible
Affordable

1 Like
#57

Agree with you, highly accessibleā€¦ and will have to find that book :slight_smile:

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#58

Itā€™s transparent and everyone can see whatā€™s going on. With that one can create money legos which can be combined to create a new service

1 Like
#59

defi allows for users to take full control of their own funds within the protocol that they agree to.

2 Likes
#60

Transparent, no intermediaries, trustless.

1 Like