TradFi, CeFi, and DeFi

AMMs, lending, yield, impermanent loss, and self-custodial finance.

Updated 2026 ж. 21 қаз.GaiaEx Academy Editorial

Бұл сабақта

TradFi vs DeFi vs CeFi
What makes DeFi distinct

Негізгі тұжырымдар

1DeFi is permissionless, composable, and on-chain
2CeFi offers crypto services via a custodian
3TradFi relies on regulated intermediaries

Сабақ қорытындысы

TradFi, CeFi, and DeFi are different ways to organize trust.

Mental model

The core idea behind tradfi, cefi, and DeFi

TradFi, CeFi, and DeFi are different ways to organize trust. The product may look similar, but custody, transparency, and recourse are not the same.

TradFi vs DeFi vs CeFi
What makes DeFi distinct

Mechanics

How to reason about tradfi, cefi, and DeFi

TradFi relies on regulated institutions and legal claims.

CeFi offers crypto services through centralized operators.

DeFi uses smart contracts and wallet-based access, with fewer gatekeepers and fewer recovery options.

DeFi is permissionless, composable, and on-chain
CeFi offers crypto services via a custodian
TradFi relies on regulated intermediaries

Example

TradFi, CeFi, and DeFi in practice

A lending product at a bank, a crypto lender, and an on-chain lending protocol can all offer borrowing, but the enforcement and custody models differ completely.

Есте сақтаңызDecision rule: Classify the product by who holds assets and who enforces the rules.

Common mistakes

Common mistakes with tradfi, cefi, and DeFi

Calling something DeFi because it involves crypto is inaccurate. If a company controls deposits and balances, it is closer to CeFi.

Risk notes

Risk checks for tradfi, cefi, and DeFi

TradFi has counterparty and legal risk, CeFi has custody and solvency risk, and DeFi has contract and oracle risk.

Identify custody model.
Identify rule enforcement.
Match the risk to TradFi, CeFi, or DeFi.

Practice

A short drill for tradfi, cefi, and DeFi

Identify custody model.
Identify rule enforcement.
Match the risk to TradFi, CeFi, or DeFi.

Қайталау

Негізгі терминдер

CeFi: Centralized Finance — crypto services run by a custodial company (e.g. an exchange) rather than on-chain code.
Custody: Who controls the private keys. Custodial = a third party holds them; non-custodial = you do.
DeFi: Decentralized Finance — permissionless, composable financial services built on smart contracts.
Impermanent Loss: The loss a liquidity provider faces when pooled asset prices diverge versus simply holding them.
Oracle: A service that feeds real-world data (like prices) to smart contracts on-chain.

Дерек көздері