DeFi – Decentral Finance – refers to the Ethereum based finance ecosystem where the users are controlling their assets.
DeFi is a response to many crypto platforms, which controlled the client assets (from example centralized crypto exchange or centralized crypto lending). These central crypto platforms did not align with the key idea of the blockchain, where the users and only users should control their assets.
Following services are available in Decentral Finance:
Lending and borrowing
Money market funds
In SmartCredit.io we respect very much the DeFi philosophy. However, we think the right approach is the hybrid solution between centralized crypto solutions and DeFi solutions. It’s about using the blockchain for what is really required on the blockchain and deploying other components (Crypto Credit Score, KYC, Collateral calculations) in the off-chain components.