CeFi and DeFi - Differences

Centralized Finance - CeFi

CeFi refers to traditional finance where users trade crypto over a platform on which they basically trust the agency and other users.

Advantages of CeFi

• Efficient transaction processing

• More trading pairs

Disadvantages of CeFi

• High transaction fees

• Lack of privacy

• Lack of transparency

• Lack of absolute control over funds

ONTO-supported CeFi dApps:

• Babel

• FBGone

• …

Decentralized Finance - DeFi

DeFi is a new development in the crypto industry that enables fully decentralized blockchain applications, removing the need for third-party institutions. Users rely on the exchange protocol rather than an intermediary.

Advantages of DeFi

• Fully automated

• Universally accessible

• Greater degree of system interoperability

Disadvantages of DeFi

• Relatively lower liquidity

• Project scalability

• Lower tolerance for human operational error

ONTO-supported DeFi dApps:

• 1inch

• MakerDAO

• Compound

• Uniswap

• ……