A presentation on Decentralized Finance

1. DECENTRALIZED FINANCE (DEFI)
GROUP 1

2. CONTENTS
֍ Definition of the concept of Decentralized Finance
֍ Key characteristics of Decentralized Finance
֍ Breakdown of characteristics of Decentralized Finance
֍ Importance of Decentralized Finance
֍ Challenges and Risks of Decentralized Finance
֍ Future Potential of Decentralized Finance
֍ Commonly used Acronyms in Decentralized Finance
֍ Conclusion
֍ Refences

3. WHAT IS THE CONCEPT OF
DENCENTRALIZED FINANCE?
Decentralized finance, or Defi, is a financial system built on blockchain
technology that allows individual to access and utilize various financial
services without relying on centralized intermediaries like banks and
brokers. It aims to provide open, transparent, and inclusive financial
solutions through decentralize protocols and smart contracts.

4. KEY CHARACTERISTICS OF
DECENTRALIZED FINANCE
֍Financial systems built on blockchain technology and smart contracts
֍ Elimination of intermediaries such as bankers and brokers (Lending ,
Borrowing and trading without intermediaries)
֍ Open and transparent protocols
֍ Permissionless access for anyone with an internet connection
֍ Enhanced Privacy and Security
NOTE : This of our presentation will mainly be focused on
1. Financial systems built on blockchain technology and smart contracts
2. Elimination of intermediaries such as bankers and brokers (Lending ,
Borrowing and trading without intermediaries)

5. FINANCIALSYSTEMS BULIT ON
BLOCKCHAINAND SMART CONTRACTS
Blockchain Technology:
Refers to the underlying technology that enables transparent,
secure, and decentralized financial transactions without
intermediaries. Blockchain serves as an distributed ledger, where
transaction records are stored across a network of computers.
Smart Contracts:
They are self-executing agreements coded on a blockchain. These
contracts automatically execute predefined conditions when they
are met. By leveraging blockchain’s security transparency, smart
contracts enable the automation of financial process, eliminating
the need for intermediaries.

6. ELIMINATIONS OFINTERMEDIARIES SUCHAS
BANKERSAND BROKERS (LENDING, BORROWIN,AND
TRADING WITHOUT INTERMEDIARIES
Decentralized Finance (DeFi) has transformed the financial landscape
by leveraging blockchain technology to enable lending, borrowing, and
trading without intermediaries.
Through the use of smart contracts, blockchain establishes a transparent
and trustless environment, allowing individuals to engage in financial
activities directly.
This has led to the following benefits such as;
֍ Peer-to-peer Lending
֍ Direct Borrowing
֍Trustless Trading

7. IMPORTANANCE OF DECENTRALIZED FINANCE
֍ Accessibility and inclusivity
֍ Financial Empowerment
֍ Transparency and Trust
֍ Interoperability
֍ Open Finance innovation

8. CHALLENGESAND RISKS OF DECENTRALIZED
FINANCE
֍ Smart Contracts Risks
֍ User errors
֍ Regulatory Concerns

9. FUTURE POTENTIALS OF
DECENTRALIZED FINANCE
֍ Integration with Traditional Finance
֍Cross-Chain Interoperability
֍Enhanced Security Measures

10. COMMONLYUSEDACROYMS IN DECENTRALIZED FINANCE
֍ DeFi-Decentralized Finance
֍ DAO-Decentralized Autonomous Organization
֍ DEX-Decentralized Exchange
֍ NFT-Non-Fungible Token
֍AMM-Automated Market Maker.
֍ WBTC- Wrapped Bitcoin
֍Liquidity Provider : Users who supply their cryptocurrencies to liquidity pools in decentralized
exchanges , allowing other users to trade or borrow from those pools.
֍Flash Loan: A type of uncollateralized loan available in some DeFi protocols, allowing users to
borrow a large amount of funds, use them for a specific purpose within the protocol, repay the loan
within the same transaction.
֍StableCoin: A cryptocurrency that is designed to maintain a stable value, usually pegged to fiat
currency like Ghana cedis, US Dollar.
֍Cryptography: Refers to the practice of securing information and communication through the use
codes or mathematical algorithms.
֍Cryptocurrency: A digital currency that uses cryptography for secure transactions and operates and
independently of a central authority

11. CONCLUSION
In conclusion, decentralized finance, or DeFi, powered by blockchain technology and
smart contracts, introduces a groundbreaking approach to traditional financial
systems. By eliminating intermediaries, DeFi enables individuals to directly engage
in lending, borrowing, and trading activities, enhancing efficiency and reducing
costs. This disruptive model fosters financial inclusivity, providing access to
previously underserved populations.
However, the increasing popularity of DeFi also presents challenges, including
scalability, regulatory concerns, and security risks, which need to be addressed to
ensure its sustainable growth. Nonetheless, the immense potential for innovation and
the transformative impact on the financial industry make decentralize finance a
promising avenue that could revolutionize the way we perceive and engage with
financial services.

12. REFERENCE
֍ “DeFi Beyond the Hype: A Guide to Decentralize Finance” by Erik Voorhees
(2019)- A comprehensive guide that introduces the concepts and application of
decentralized finance, including blockchain technology, smart contracts, and the
various financial activities conducted without intermediaries
֍“Blockchain Basics: A Non-Technical Introduction in 25 steps” by Daniel Drescher
(2017)-This book provides a beginner-friendly introduction to blockchain technology
and its applications, including its role in decentralized finance and how smart
contracts function.
֍ “Decentralized Exchanges; An overview” by CoinDesk Research (2020)- An
analysis of decentralized exchanges (DEXs) and their role in facilitating secure and
trustless trading without intermediaries. Available at:
https//www.coindesk.com/research/etherum-2-0-decentralized-exchnges/.
֍ A beginner’s Guide to Smart Contracts” by CoinCentral (2021)- This article
provides a beginner-friendly explanation of smart contracts, their function, and their
applications in decentralized finance. Available at ; https://coincentral.com/smart-
contracts-guide-beginners