# What is Decentralized Finance (DeFi)?
##
* [x] **Decentralized Finance (DeFi) is an open financial system built on blockchain technology and smart contracts. It aims to replace intermediaries in the traditional financial system, such as banks and exchanges, and provide users with more transparent, efficient and open financial services.**
* [x] **In DeFi, all financial transactions and services are executed through smart contracts. Users do not need to rely on banks or other centralized institutions, but can complete operations directly on the blockchain. The core concepts of DeFi are decentralization, permissionless, and trustless.**
***
#### Core features of decentralized finance
* [x] **No intermediary required**
- **Traditional finance relies on intermediaries such as banks and brokerages, while DeFi automatically executes transactions through smart contracts, eliminating the need for intermediaries.**
* [x] **Transparency**
- **All transactions and rules are publicly recorded on the blockchain and can be reviewed by anyone.**
* [x] **Global and borderless**
- **DeFi services can operate globally and anyone with an internet connection and a crypto wallet can participate.**
* [x] **Permissionless**
- **Any user can use the DeFi protocol without identity verification or authorization.**
* [x] **Programmability**
- **Through smart contracts, DeFi can achieve complex financial functions such as lending, trading, derivatives, and profit distribution.**
***
#### The main applications of decentralized finance
* [x] **Wallet Mining**
- **Users can mine through DeFi platforms and earn or pay interest.**
* [x] **Decentralized Exchanges (DEX)**
- **Such as Uniswap and SushiSwap, allowing users to trade tokens directly on the chain without relying on centralized exchanges.**
* [x] **Stablecoins**
- **Stablecoins (such as USDT, USDC) are linked to the value of fiat currencies through smart contracts and are an important part of the DeFi ecosystem.**
* [x] **Yield Farming**
- **Users earn extra rewards or returns by providing funds to liquidity pools.**
* [x] **Payments and Remittances**
- **Use DeFi protocols to complete global payments and remittances quickly and at low cost.**
* [x] **Decentralized Insurance**
- **Through smart contracts, automatic claims can be realized, and users can purchase insurance contracts to reduce financial risks.**
***
### Application of NEXC Web3 in DeFi
#### What is NEXC Web3?
> **NEXC Web3** **is a decentralized finance (DeFi) platform based on blockchain technology, aiming to build a transparent, accessible and inclusive distributed digital world system.**
>
> **It implements a decentralized peer-to-peer economic circulation model that is secure and risk-free, meeting the mining needs of users and institutions worldwide.**
>
> **NEXC Web3** **will solve the high-risk, high-cost and low-efficiency problems common in the traditional financial system. Through decentralized design and smart contract technology, NEXC Web3** **provides users with trustless, safe and efficient financial solutions, redefining the future of global finance.**
#### NEXC Web3 main features:
1. **NEXC Web3**
* [x] **NEXC Web3 is a decentralized smart contract protocol based on the Ethereum network (EVM), focusing on providing user mining and profit sharing services.**
* [x] **Users can safely share cryptocurrency assets and enjoy transparent and fair profit distribution.**
* [x] **The MEXC Web3 Loop smart contract uses decentralized technology to automatically mine income using algorithms without a complicated registration process, providing efficient global asset allocation, ensuring transparency, security, and fairness for users, and maximizing profit potential.**
2. I**nvitation Rewards**
* **By inviting new users to participate, users can get sharing rewards:**
> - [x] **Level 1 (direct invitation): 15% of each circulation income.**
> - [x] **Level 2 (indirect invitation): 8% of each circulation income.**
> - [x] **Level 2 (indirect invitation): 5% of each circulation income.**
> - [x] **Level 2 (indirect invitation): 2% of each circulation income.**
>
> **All rewards are immediately distributed to the wallet address of the inviter through the smart contract.**
4. **Decentralized transparency**
* [x] **All NEXC Web3 transactions and earnings records are recorded on the blockchain, and users can view them at any time through the blockchain browser.**
***
#### Advantages of **NEXC Web3**
* [x] **High transparency:**
**All rules and profit distribution processes of NEXC Web3 are automatically executed by smart contracts, and all transactions are open and transparent.**
* [x] **Fund security:**
**Users do not need to deposit money and can manage their own funds, avoiding the fraud risks that may exist in traditional finance.**
* [x] **Low threshold participation:**
**Users only need to have a crypto wallet to deposit funds and start earning profits.**
* [x] **Flexibility:**
**Users can deposit and withdraw money at any time without being restricted by traditional banking time.**
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**Summarize**
**Decentralized finance (DeFi) has completely changed the operating mode of traditional finance through blockchain technology and smart contracts, making financial services more transparent, efficient and global.**
**DeFi platforms like NEXC Web3 provide users with convenient investment tools and maximize the advantages of blockchain technology through features such as savings income, liquidity circulation and invitation rewards.**
**NEXC Web3 is a typical representative in the DeFi world. It shows how to use blockchain technology to achieve fair, secure and efficient financial services, suitable for users who want to explore new investment methods.**
{% endhint %}
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