What is DeFi? A Comprehensive Guide for 2024 � CryptoMode

Cryptomode_202403 Jun, 2024Business

Most DeFi applications are built on Ethereum, a flexible blockchain designed for creating smart contracts. A smart contract is essentially a computer program that automatically executes when certain predefined conditions are met. Let?s illustrate with an example. Imagine you want to borrow $100 worth of cryptocurrency. You go to a DeFi lending platform and deposit another cryptocurrency as collateral ? say $150 worth of Ethereum.