Smart contracts
Programs on the blockchain execute the rules on their own, without an employee or a company approving each step.
What is DeFi
DeFi, or decentralized finance, is the name given to financial services that work directly on the blockchain, with no bank or company in the middle. These are applications that let you swap, lend, and earn yield on crypto through automated contracts. Because they have no intermediary or support, they also bring risks that are important to understand.
- Financial services directly on the blockchain
- No bank or company in between
- User control and responsibility
Concept
DeFi in one sentence
DeFi is the English acronym for decentralized finance. The idea is to offer services similar to those of a bank, like swapping and lending, but without a bank in charge.
Instead of an intermediary, the rules are executed by automated contracts on the blockchain. This opens up possibilities, but also shifts all responsibility to the user.
How does DeFi work?
Three ideas explain the foundation.
No intermediary
The user interacts directly with the app. There is no bank, manager, or support along the way.
Own wallet
The user holds the funds in their own wallet and takes control and responsibility for them.
An open and demanding model
DeFi provides broad access, but demands knowledge and attention from those who use it.
What exists in DeFi
What you can do in DeFi
Swap cryptocurrencies. Directly on the blockchain, without an exchange in the middle.
Lend and borrow. Crypto through automated contracts.
Seek yield. In protocols, knowing that returns are not guaranteed.
Access services. Without approval, but also without institutional protection.
DeFi risks
The absence of an intermediary has another side. It’s worth understanding before anything else.
No support
If you make a mistake in a transaction or lose access, there is no one to turn to. There is no customer support or chargeback.
Bugs and scams
Contracts can have exploitable bugs, and there are many fake projects created solely to deceive users.
No regulation
A large part of protocols have no accountable party or the protection of a regulated institution.
DeFi and Brasil Bitcoin
Brasil Bitcoin is a regulated exchange, with its own custody and human support. For those who are starting out, it’s the simplest and safest way to have crypto, without needing to operate contracts on your own.
Crypto without complications
Simple buying and custody, without operating protocols alone.
Deposit via Pix
Start with low amounts.
Custody and security
Proprietary infrastructure and operation within Brazilian regulation.
Human support
Get your questions answered whenever you need.
How to start with crypto safely
Before anything more advanced, get the basics right on a regulated platform.
1
Open your account
Complete identity verification.
2
Deposit in reais
Use Pix, directly in the app.
3
Buy the cryptocurrency
Choose the asset and the fraction you want.
4
Store with peace of mind
Never share your account access.
Frequently asked questions
DeFi is decentralized financial services on the blockchain.
DeFi means decentralized finance: financial services that work directly on the blockchain through automated contracts, with no bank or company in the middle.
DeFi involves high risks and requires caution.
Technology enables a lot, but without an intermediary there is also no support or protection. There are risks of contract bugs, scams, and lack of regulation.
A regulated exchange offers custody, support, and security.
In a regulated exchange, like Brasil Bitcoin, you have custody, support, and security. In DeFi, you operate on your own, without an intermediary and without support to turn to.
You can buy crypto without using DeFi protocols.
Yes. It’s possible to buy and hold cryptocurrencies on a regulated platform, simply, without needing to enter DeFi protocols.
DeFi protocols generally do not offer institutional protection.
The crypto sector operates within Brazilian regulation, but DeFi protocols generally have no accountable party or the same protection as a regulated institution.
This content is for educational purposes only.
No. This content does not encourage the use of DeFi nor constitute investment advice. DeFi protocols involve high risks and do not have the protection of a regulated institution.
Start with crypto safely
Open your account and start with the amount that makes sense for you.