# 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 * …… --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.onto.app/basics/assets-management/cefi-and-defi-differences.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.