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@chaskin.eth
My attempt at a concise ELI5 of DeFi, am I missing anything?
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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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