What Is Decentralized Finance DeFi and How Does It Work?

Instead, they’re decentralized apps, or dApps, existing on a blockchain (usually the Ethereum blockchain), self-contained little programs that fire when agreed-upon conditions are met—that’s the “smart” bit. Stablecoins are crypto whose value is pegged to an underlying asset (the US dollar). Stable coins are backed by fiat currencies, baskets of currencies, cryptocurrencies (such as ETH), …

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