10. DeFi (Decentralized Finance)

Wednesday 23rd February 2022

DeFi (Decentralized Finance) is an umbrella term for financial applications powered by blockchain technology.

DeFi (Decentralized Finance) is an umbrella term for financial applications powered by blockchain technology.

The most popular DeFi Blockchains include:

  1. Ethereum,
  2. Terra,
  3. Binance Smart Chain,
  4. Avalanche, and
  5. Fantom.

DeFi Mindmap

 

Mindmap on DeFi

Types of DeFi protocols

  1. Algo-Stables: This includes algorithmic coins & stablecoins.
  2. Bridges: These are protocols that bridge cryptos from one blockchain network to another.
  3. Collateralized Debt Position (CDP): These are protocols that mint their own stablecoins using collateral.
  4. Cross Chains: These are protocols that enable interoperability between different blockchains.
  5. Derivatives: These are Smart Contracts that get their value, risk, and basic structure from an underlying asset.
  6. Dexes: These are protocols that enable users to swap / trade cryptos without the need for KYC.
  7. Gaming: These are protocols that have gaming components.
  8. Indexes: These are protocols that track the performance of a group of related assets.
  9. Insurance: These are protocols that provide monetary protection in case an event occurs or does not occur.
  10. Launchpad: These are protocols that launch new projects and cryptos.
  11. Lending: These are protocols that enable users to borrow and lend cryptos.
  12. Minting: These are protocols that enable the minting or creation of Non-Fungible Tokens (NFT).
  13. Options: These are protocols that give you the right to buy or sell crypto at a pre-decided price.
  14. Oracle: These are protocols that bring information from the outside to the blockchain and vice versa.
  15. Payments: These are protocols that enable the payment / sending / receiving of cryptos.
  16. Prediction Market: These are protocols that enable the wagering / betting in future events.
  17. Privacy: These are protocols that enable the hiding of information about crypto transactions.
  18. Reserve Currency: These are protocols that use a reserve of assets to issue and back their native cryptos.
  19. Services: These are protocols that provide services to DeFi users.
  20. Staking: These are protocols that reward users for staking their cryptos.
  21. Synthetics: These are protocols that create tokenized derivatives that mimic the value of other assets.
  22. Yield Aggregators: These are protocols that aggregate yield from multiple DeFi protocols.
  23. Yield: These are protocols that reward users for staking or providing liquidity.