DeFi is an open finance where you can borrow or lend assets with ETH holders or the local currency of a smart contract's platform, for example, the stablecoin of Cosos (ATOM). DeFi has revolutionized traditional finance, and Ethereum is the foundation of this gratifying innovation.
However, DeFi is not a specific area; it covers everything — including stock markets and lending practices. For example, $ 900 million worth of ETH is currently locked in DeFi applications.
The most popular platform is MAkerDAO, where borrowers provide ETH as collateral and receive stablecoin DAIs. Meanwhile, lenders can earn with interest rates.
However, DeFi is a useful, reliable and always-controlled; it can trigger smart contracts running DeFi applications; portals that transmit off-chain information, ie oracles, cannot work.
The thing is, Ethereum and similar platforms require a reliable oracle for valuations, contracts, and dispute resolution. DeFi developers need to solve the "oracle problemПосмотреть отзыв полностью