In August, a Blockfolio poll showed that although the number of decentralized finance (DeFi) projects is increasing, most people do not understand DeFi. 32% of respondents said they don’t know what DeFi is. Although various DeFi projects and liquidity mining have become popular in the whole circle, many people still don't know what DeFi is.

DeFi is the abbreviation of Decentralized Finance, which refers to a decentralized protocol used to build an open financial system, designed to allow anyone in the world to conduct financial activities anytime, anywhere.

In traditional financial activities, financial services are mainly controlled by centralized institutions and systems, such as saving money and lending.

The core of DeFi lies in "decentralization". Similar to Bitcoin, DeFi participants try to establish a financial system that is transparent, centralized, and trustless, and provides various financial services (such as lending, investment, derivatives, etc.) ), this system can be used not only for cryptocurrencies, but potentially for all financial assets.

Decentralized finance uses blockchain technology, such as open source software and decentralized networks, to remove intermediaries such as third parties, and to directly connect the two parties to conduct financial transactions, thereby avoiding complex intermediaries. And reducing the waste of money and time costs allows traders to conduct financial activities more easily and conveniently.

On DeFi.network, the community defines three core principles of the DeFi movement: first, interoperability and open source. Second, accessibility and financial inclusion. Third, financial transparency.

The dimensions that need to be paid attention to when judging Defi projects can be obtained from some Defi data resource websites, such as: Defipulse (website: defipulse.com), Debank (website: debank.com) and QKL123 (website: qkl123.com).