Chapter 3

DeFi Revolution

Banking without banks

15 min read
Intermediate

The Bank That Never Sleeps

DeFi is like having a bank that's open 24/7, doesn't require ID, pays you interest directly, and never closes for holidays. It's banking without banks, finance without financial institutions.

“Welcome to the DeFi bank! No paperwork, no waiting in line, no minimum balance. Just connect your wallet and start earning, lending, and trading instantly.”

Traditional banks act as intermediaries - they hold your money and control access to financial services. DeFi eliminates these intermediaries using smart contracts, making finance more open, transparent, and accessible to everyone.

DeFi Building Blocks

DeFi applications are like financial legos - they can be combined and built upon each other. Here are the main building blocks:

Lending & Borrowing

Earn interest by lending your crypto or borrow against your collateral without credit checks or paperwork.

Decentralized Exchanges

Trade cryptocurrencies directly from your wallet without giving up custody of your funds.

DeFi Benefits:

  • No geographic restrictions
  • Open source and transparent
  • No minimum balances or fees
  • Composable and interoperable

Quick Check: Do you understand?

What does DeFi stand for?