DeFi services and solutions are financial applications operating on immutable blockchain networks. Some of the famous DeFi projects making waves in the market are Uniswap, Compound, Yearn. Finance, Aave, and MakerDAO.
The traditional financial system suffers from a lot of issues like lack of accountability, prone to different kinds of risks, has uncontrollable volatility, affected by frauds, and some sections of the population can never access it.
DeFi projects come in different forms like lending and borrowing platforms, asset management, stablecoin development, market-making, decentralized crypto banking, DeFi lottery system development, decentralized fund management, insurance, yield farming, staking platforms, synthetic asset creation, decentralized trading, predictive markets, analytics, wallets, and derivative protocols.
The main benefits of DeFi solutions are it is highly interoperable, maintains a high level of transparency, does not involve any central entity like a government authority or a bank in the system, does not require its users to undergo KYC (Know Your Customer) verification or submit a valid credit score for availing any financial services, ensures full custody of funds for the users, provides greater accessibility for everyone in the world, and are unhackable as the nodes are distributed throughout the globe.