#fiance major

DeFi is essentially just conventional financial tools built on a blockchain — specifically Ethereum. They are mostly predicated on open-source protocols or modular frameworks for creating and issuing digital assets and are designed to confer notable advantages of operating on a public blockchain like censorship-resistance and improved access to financial services.

Open, decentralized lending offers numerous advantages over traditional credit structures including:

• Integration with digital asset lending/borrowing
• Collateralization of digital assets
• Instant transaction settlement and novel secured lending methods
• No credit checks, meaning broader access to people that cannot tap into traditional services
• Standardization and interoperability — can also reduce costs with automation

Secured lending using open protocols like MakerDAO and Dharma are designed to rely on the trust-minimization that Ethereum affords to reduce counterparty risk without requiring an intermediary. This is accomplished via the basic cryptographic verification methods prevalent on public blockchains.