What is DeFi and how does it relate to Elrond ?
DeFi, or Decentralized Finance, is a term used to describe a new wave of financial applications and services that are built on top of blockchain technology.
These applications are designed to provide users with access to financial services that are not controlled by any single entity or institution. DeFi is based on the idea of open, permissionless access to financial services, allowing anyone with an internet connection to participate in the global economy. Elrond is a blockchain platform that has been designed from the ground up to support DeFi applications.
It uses sharding technology to enable scalability and speed, allowing for faster transactions and lower fees than traditional blockchains. Elrond also provides a suite of tools for developers to build DeFi applications on its platform, including smart contracts and decentralized exchanges. Additionally, Elrond has implemented its own native token (EGLD) which can be used as collateral for lending and borrowing within the Elrond ecosystem.
This allows users to access liquidity without having to rely on centralized exchanges or other third-party services.
