Now, what use are DeFi to us today? What uses can we give them?

Well, first of all, DeFi serves as a financial bridge between the wealth of cryptocurrency holders and a world of financial services that can be granted by making use of that wealth to generate more wealth with it.


That said, among the potential use cases of DeFi we can mention:

Decentralized lending systems :

which in fact, is one of the main use cases for DeFi today. The system is simple: if a person wants a loan and wants to use their cryptocurrencies as collateral or guarantee, they can do so without problems. The system works in a very similar way to FinTechs or traditional finance. But DeFi tends to offer better interest terms, and loans are generally approved almost instantly. Gone are the hours in the bank, sending digital documents and waiting days for a response, with DeFi you just have to interact with the DApp , make the required guarantee deposit and you will have in your possession the money you have required in loan, and all in a few minutes.

Decentralized markets:

Another use case for DeFi is decentralized markets. Creations such as decentralized exchanges (DEX), investment pools, financial derivatives, staking systems, prediction markets, and more are possible thanks to DeFi.

Payment systems:

another use that is given to DeFi is that of payment systems. The characteristics of these platforms allow them to be a trustworthy bridge to process payments from different blockchain making use of an external, decentralized and autonomous infrastructure.
Banking and insurance services: Another use of DeFi is to offer “banking” type services without being exactly a bank. For example, there are DeFi protocols that allow their users to make a certain investment. But after a while, you can receive this investment with a profit margin, and all thanks to the interest that it has generated. But not only that, but there are also systems that allow the issuance of stable coins (stablecoins), as well as digital identification systems and financial insurance.

At this point it is clear that the potential of DeFi to offer services and solutions is varied, as varied as the inventiveness of the people who develop such systems.