What is DeFi?
DeFi is an open financial system based on blockchain. It does not rely on traditional financial institutions such as brokers, exchanges or banks to provide financial services.The DeFi platform allows people to lend or borrow funds from others and trade cryptocurrencies. It opens up financial services to anyone with an internet connection and they’re largely owned and maintained by their users. Simply put, DeFi is a brand new financial service industry which composed of many financial service bots.
Comparison with the traditional finance
There’s a growing crypto economy, where you can lend, borrow, long/short, earn interest, and more. To understand better of this new financial system, let us see the problems which existed in the traditional finance.
- Many people still cannot access to set up a bank account or use any financial services.
- Trading hours is limited in traditional finance.
- The service fees is invisible.
- Money transfer can take days because of the intermediary.
- You can not control your own money.
What can you do with DeFi?
- Wallet
As a public blockchain, Anonymous Operating System (AOS) is designed for sending transactions in a secure way. You just need to install a wallet to receive your payment anywhere and anytime, just like Bitcoin.
2. Asset Management Tools and Aggregators
Asset management tools are specialized to provide wallet scanning services.
You can track your full portfolio through the DeFi protocols on the supported blockchains.
3. Lending and Borrowing
Decentralized lending works without either party having to identify themselves. Instead the borrower must put up collateral that the lender will automatically receive if their loan is not repaid. This allows you to borrow money without credit checks or handing over private information.
4. DEX
In crypto, basically everyone has to cash out after earning money, all of which must be realized through decentralized exchanges. For example, we now have a certain crypto asset in hand, the DEX robot will automatically return another asset, which completes a transaction service.
5. Insurance
Decentralized insurance aims to make insurance cheaper, faster to pay out, and more transparent.
6. Derivatives
Derivatives are including futures, options, leverage, insurance, etc.
AOS and DeFi
The tps of AOS is as high as 10,000 and far surpasses mainstream blockchains . The high-performance have laid a good foundation for DeFi. So far, AOS DeFi ecosystem has already listed a decentralized exchange such as AOSWAP.
