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Introduction to DeFi on NEAR.

What is DeFi?

DeFi stands for decentralised finance. In contrast to centralised finance, the kind of finance we are used to in everyday life like banking, exchanges, and financial service providers, which utilise centralised software and servers, DeFi utilises decentralised smart contracts which function on a decentralised blockchain data structure.
Smart contracts provide immutably coded instructions on how the program should run without any intermediary involvement. Additionally, oracles like Flux, Band and Chainlink provide smart contracts access to off-chain, real world data to ensure truthful, smooth operations.

What does DeFi achieve?

DeFi eliminates the requirement of trusting centralised entities with investments and fund custody, allowing a user of DeFi to directly interact with investment tools and services using a simple digital wallet (with minimal to no fees). Users which have funds in these wallets on blockchain networks such as NEAR can use DApps (Decentralised Applications) to invest, trade, lend, borrow, stake, liquid stake, or farm cryptocurrencies.
To read more about DeFi on NEAR, check out our OWS article on Medium here.
To learn more about what the NEAR team has to say about DeFi, click here.
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What is DeFi?
What does DeFi achieve?