Standing on the shoulders of giants, the nascent decentralized finance (DeFi) ecosystem represents the next natural step in Satoshi Nakamoto’s vision-a decentralized and independent financial system that can provide us with the ability to remain in the traditional financial world. Complex products and services that can be found-loans, deposits, derivatives and other financial products.
DeFi is seen as a catalyst for innovation, empowering new business models, and creating new tools and opportunities for entrepreneurs and people. This is an era of creativity and a moment when a new generation of industry leaders appears.
Traditional lenders bear two forms of risk. The first is the risk of default: if the borrower runs away with the money, it is obviously bad. But the second risk that lenders face is liquidity risk: If the lender lends too much assets at the wrong time or fails to receive repayment in time, the lender may unexpectedly lack liquidity and fail to fulfill its obligations