The world of decentralized finance—conveniently referred to as DeFi—is an emerging one, an expanding movement that presents countless opportunities to global users. It can democratize access to financial services, providing individuals with the ability to set up a wallet for their digital assets. As Dan Schatt and Domenic Carosa, fintech veterans and executives of DeFi startup Earnity, explain, many of these individuals wouldn’t otherwise be able to set up accounts with centralized financial institutions.
DeFi is an ecosystem that is founded on global, public, and distributed networks like Ethereum. It utilizes self-executable digital agreements or better known as smart contracts. The digital ecosystem delivers protocols and products for global users to take advantage of more advanced and secure financial applications with little capital and without the gatekeeping of intermediaries.
Ready, Set, Purchase
To get started, one must create a cryptocurrency wallet using a browser, preferably one that supports Ethereum. It would be helpful if the browser could also connect to different DeFi protocols. As most DeFi is developed on Ethereum, users are encouraged to purchase ETH. It’s worth noting that navigating DeFi can be challenging at first. It’s essential to immerse oneself in the ecosystem by lending out crypto and becoming a “yield farmer.” Yield farmers are rewarded with governance tokens for loaning out their cryptocurrencies.
According to Earnity executives Domenic Carosa and Dan Schatt, DeFi asset management platforms allow users to manage, monitor, and deploy their capital through one interface. The world of DeFi can be intimidating at first, making welcoming curated financial platforms like Earnity a necessity for those getting started. As the ecosystem is bursting with innovation, global users need to belong to a DeFi community that encourages them to learn more about the technology while teaching them to earn, save, and trade through the platform.