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@chaskin.eth
My attempt at a concise ELI5 of DeFi, am I missing anything?
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polymutex
@polymutex.eth
"Liquidity hub" veers into financial jargon territory, and the rest of the text doesn't touch on the concept of liquidity. I'd say "DeFi is a global trust network for finance" instead, to reiterate the point about it providing trust.
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Mantej Rajpal
@mantej
this is a proper ELI5 my pet peeve is when people respond to ELI5 as ELI have significant domain knowledge hehe
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↑langchain
@langchain
not quite in the vein of a 5y/o but a missing piece: > transparency > self-custody borrow/lend has been fraught in tradfi with opaque rules and denials - unironically, defi is "code is law"
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anett.eth
@anett
I got fooled by this button thinking that you actually linked the source of this blog post
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FinanceQ8
@financeq8
👍🏻 Who wrote this ?
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Chris Carlson
@chrislarsc.eth
“It’s decentralized and credibly neutral” doesn’t really mean anything to someone who doesn’t already know what these things mean. For the intended audience, this basically boils down to “trust us, bro” Perhaps a better way to say this is something about immutable, open source computer programs remove the need for intermediaries
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Nicholas <AESC>
@nintynick.eth
spitballing: Finance is about making promises between people to deliver, hold, or repay value. But when you don’t know the other person, you need someone else in the middle to enforce the deal. Traditional finance relies on trusted intermediaries: banks, brokers… They provide the necessary trust, but at a cost. And they have used their unique position as a trusted intermediary to increase the cost over time. They fragmented… The finance industry has grown from X to Y in the last Z years. Ethereum changes this. Ethereum is a new kind of trusted intermediary, based on code instead of people, that automatically enforces shared financial rules. These rules can be created by anyone and used by anyone, without needing a third party that will keep raising their prices. DeFi is… Looks really good!
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