<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9029002e-da2b-491d-98e5-70550b05b025/Plenty_Liquidity_Provider_Token.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/9029002e-da2b-491d-98e5-70550b05b025/Plenty_Liquidity_Provider_Token.png" width="40px" /> Decentralized finance (DeFi) "refers to an open, permissionless, and highly interoperable protocol stack built on public smart contract platforms. It replicates existing financial services in a more open and transparent way. In particular, DeFi does not rely on intermediaries and centralized institutions. Instead, it is based on open protocols and decentralized applications (DApps).

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Applications such as decentralized exchanges, debt markets, insurance protocols, synthetic assets, stablecoins, and more are at this very moment, around the clock, powering an alternate, completely autonomous, decentralized financial system with incredibly disruptive and empowering properties.

Agreements are enforced by code, transactions are executed in a secure and verifiable way, and legitimate state changes persist on a public blockchain. Thus, this architecture can create an immutable and highly interoperable financial system with unprecedented transparency, equal access rights, and little need for custodians, central clearing houses, or escrow services, as most of these roles can be assumed by 'smart contracts.'"

DeFi Advantages

Cost Reduction: Replacing middlemen with self executing code reduces costs to a fraction of legacy services.

Accessibility: Anyone with an internet connection can participate 24-7-365.

Openness: Anyone can build on, access, or provision liquidity to DeFi systems.

Self-custodial: Users custody and control their assets at all times.

Speed: Instant execution, settlement, delivery anywhere in the world.

User-ownership: Users provide self-custodial services that benefit fellow users of the protocol, capturing fees typically awarded to financial institutions.

Automation: Execution, settlement, and delivery happen automatically via smart contracts without intermediaries or middlemen.

Composability: Applications can be combined to form a far superior structure.

DeFi Data (in USD)

Ethereum Transaction Volume

Decentralized Exchanges Monthly Volume Growth