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In the article " What is DeFi? ", we have explained the definition of DeFi and the application of DeFi. Now, this article will extend the topic of DeFi Borrowing and Lending. What is DeFi Lending？ DeFi lending, or DeFi crypto loans, means people can borrow cryptocurrencies (generally stable coins or fiat) from a decentralized financial platform by locking crypto assets without intermediaries. In general, the interest rate is lower than a traditional financial platform. Meanwhile, the lender can gain interest(earn coins) when lending the crypto to the borrowers. How DeFi Lending Works? How to Borrow Crypto with DeFi? In the crypto world, new projects are launching every day, the crypto price may increase or decrease sharply. Some crypto investors are eager to take risks to invest in different kinds of projects. If they want to invest, cash flow is vital, so they will try to borrow money from a financial platform. However, some investors take a conservative strategy by holding ...

Introduction When people talk about digital cryptocurrency, we may face cryptocurrency investment. The major players of cryptocurrency financial investment can be grouped into two broad categories, CeFi and DeFi, which stand for Centralised Finance and Decentralised Finance. One of the core philosophies of cryptocurrency is decentralization, which means no agencies in the middle but people can complete transactions directly between each other. "DeFi" is designed based on this philosophy, utilize smark contract, people can lend, earn, save, trade without any agencies, for example, banks in the middle. However, with the features of smart contracts, it may come with certain risks, such as investors may lose money because of the bugs of codes, get cheated by malicious actors. Moreover, people need to know some knowledge of cryptocurrency technology before taking part in DeFi. "CeFi", opposite concept to "DeFi", combines some attributes of DeFi, such as yield b...

  Introduction Defi stands for Decentralized Finance, a financial application ecosystem built on a blockchain network. In other words, DeFi establishes an open-source and transparent financial system that provides financial services to everyone without central authorities. It creates entirely new financial markets, products, and services. More specifically, the traditional financial system is controlled by central authorities such as the government and banks. They control the flow of funds and provide most of the financial services. For example, money transfers, savings plans, insurance and the stock markets. The traditional financial system was built on the trust of investors. However, the centralized financial system (or CeFi for short) has its own risks, such as mismanagement, fraud and corruption. It has the potential to collapse from the center and it is quite expensive. The alternative is decentralized finance that does not have a central authority. They are open and trustwor...