One of the most popular uses for DeFi at the moment is lending and borrowing. Compared to the traditional centralized systems, decentralized finances can offer instant transaction settlement, the ability to collateralize digital assets, no credit checks, and potential standardization in the future. Lending marketplaces on the blockchain reduce counterparty risk, make borrowing and lending cheaper, faster, and available to more people.
These can include the issuance of stablecoins, mortgages, and insurance. Largely because of the number of intermediaries needing to be involved, the process of getting a mortgage is expensive and time-consuming. With the use of smart contracts, underwriting and legal fees may be reduced significantly. Insurance on the blockchain could eliminate the need for intermediaries and allow the distribution of risk between many participants.
You might be interested to also see the following guides:
Join the De.Fi Telegram channel
Follow De.Fi on Twitter
Read the De.Fi guides on Medium
September 24 • 2 minutes
The end of May brought important updates across...
June 2 • 3 minutes
The start of May was filled with key updates and powerful...
May 19 • 4 minutes
The second half of April brought a lot of...
May 1 • 3 minutes
April started with innovation, milestones, and new...
April 22 • 4 minutes
March was a busy and impactful month for the De.Fi Ecosystem. We launched a ...
April 1 • 4 minutes
February was filled with major updates, partnerships, and...
March 14 • 3 minutes
© De.Fi. All rights reserved.
