20/10/2022
What is ?
CeDeFi is a consortium of and that combines the best features and attributes of both financial systems.
For some time, the financial system has been divided into centralised finance (CeFi) and decentralised finance (DeFi). CeFi is a traditional, bank-backed financial system, while DeFi is based on cryptocurrencies and smart contracts.
However, a new system, "CeDeFi", a combination of and decentralised finance, has emerged and is gaining traction. So, what is CeDeFi and how does it work?
CeDeFi provides the same functionality as DeFi protocols while being centralized, allowing people to access DeFi products such as Decentralized exchanges (DEX), liquidity aggregators, income farming tools, and lending agreements, while still leveraging the strengths of the CeFi system.
Unlike , which requires no license and can be used by anyone, CeDeFi projects tend to be more centralized. They are usually managed by a single or small group of entities, which allows them to exercise more control (similar to ).
Overall, the CeDeFi ecosystem is a mix of centralized and decentralized models that aim to improve on traditional cryptocurrency models to achieve faster transactions, higher security, larger trading volumes, and relatively lower fees than traditional systems.