DeFi Crash Course

DeFi stands for Decentralized Finance and refers to a variety of financial applications operating with blockchain technology and outside of typical financial institutions like banks and credit unions. As a concept, DeFi is not restricted to borders and opens up financial opportunities to everyone worldwide. There are several common characteristics with any DeFi application:


 * 1) Transparent: The code for any DeFi application is open to the public, allowing anyone to verify the integrity of a given application and the intent of its developer.  This transparency extends to transactions utilizing the application: each transaction is recorded on a public blockchain.
 * 2) Open: DeFi is open to everyone worldwide; you are not restricted by the geographic borders you reside in.
 * 3) Non-Custodial: You control your own assets rather than relying on financial institutions to protect and manage your wealth.  Specific to the crypto world, you control your personal private keys and recovery seeds, instead of utilizing a custodial wallet on an centralized exchange.

Popular DeFi Applications
The most popular DeFi applications include:

Decentralized Exchanges (DEXs): An online exchange where a user can exchange one currency for another.

Stablecoins: Cryptocurrency that is tied to a fiat currency such as the Dollar or Euro. There is a variety of types of stablecoins including collateralized, partially collateralized, and algorthmic stablecoins.

Lending Platforms: A platform that allows you to supply and borrow cryptocurrency assets, including stablecoins, replacing the need to secure loans from a bank.

Wrapped Coins: A way to use a token from one blockchain network on a different blockchain. For instance, wrapped Bitcoin could be used on the Binance Smart Chain, where you could earn internet on a lending platform.

Yield Farming: Using various DeFi tokens to earn higher interest.

bEarn.Fi within the DeFi Space
The bEarn.fi strives to be the first true an all-in-one DeFi ecosystem on the Binance Smart Chain, with platforms or protocols that include a DEX, Lending, vaults to maximize returns from yield farming, and an algorithmic stablecoin pegged to the U.S. Dollar. It was also the first in the industry to offer multi-pegs: tokens that algorithmically follow the price of both real-world assets like gold or the Euro or crypto tokens like DOT or DOGE.