What is DeFi? Finance without a middleman
By SendPay Business · · 2 min read
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- 2The tool works it out
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DeFi, short for decentralised finance, is a set of financial services such as trading, lending and borrowing that run on public blockchains through smart contracts, instead of through a bank or a company's systems.
How it works
People connect a self-custody wallet to a DeFi app and interact directly with smart contracts. A decentralised exchange, for example, lets users swap one token for another from a shared pool of funds, with prices set by code rather than an order book run by a company.
DeFi vs centralised services
Tap to explore
Tap each one to see what it means.
Centralised (CeFi)
a company holds your funds, checks your identity and handles support.
DeFi
you keep control of your wallet and deal with code; there's usually no one to call if something goes wrong.
Try it
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Colour
What it does
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The risks
Bugs in smart contracts have led to large losses, prices can move very fast, and some projects are outright scams. Transactions generally can't be reversed, and in the UK crypto isn't covered by the Financial Services Compensation Scheme.
Where SendPay fits
SendPay doesn't offer DeFi services. SendPay crypto exchange platforms let your customers buy, sell and hold crypto under your own brand, with assets held with regulated partners, and you set your own trading fee.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
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- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
What is impermanent loss?
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Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.