Quotes About DeFi

minimized friction and maximized value to users. Because it costs no more at an organization level to provide services to a customer with $100 or $100 million in assets, DeFi proponents believe that all meaningful financial infrastructure will be replaced by smart contracts, which can provide more value to a larger group of users. Anyone can simply pay the flat fee to use the contract and benefit from the innovations of DeFi.

DeFi is unique relative to the traditional financial system because it is permissionless, open access, global, composable, and transparent. No longer are centralized institutions needed for basic financial actions.

Intended to maintain price parity with some target asset, USD, or gold, for instance, stablecoins provide the necessary consistency that investors seek to participate in many DeFi applications and allow a cryptocurrency native solution to exit positions in more volatile cryptoassets.

Fungible tokens are a cornerstone of the value proposition of Ethereum and DeFi. Any Ethereum developer can create a token divisible to a certain decimal granularity and with units that are all identical and interchangeable.

Any platform with admin-controlled functionality is not truly DeFi because of the admins' centralized control. A contract without the capacity for change is necessarily rigid, however, and has no way to adapt to bugs in the code or changing economic or technical conditions. For this reason, many platforms strive for a decentralized upgrade process, often mediated by a governance token.

Given it costs no more to provide services to a customer with $100 or $100 million in assets, we believe that DeFi will replace all meaningful centralized financial infrastructure in the future.

DeFi is fundamentally a competitive marketplace of decentralized financial applications that function as various financial "primitives" such as exchange, save, lend, and tokenize. These applications benefit from the network effects of combining and recombining DeFi products and attracting increasingly more market share from the traditional financial ecosystem.

keepers are external participants directly incentivized to provide a service to DeFi protocols, such as monitoring positions to safeguard that they are sufficiently collateralized or triggering state updates for various functions.