1. What is CeDeFi?

CeDeFi is a union of CeFi and DeFi, combining the best features and attributes of the two financial systems.

For a while now, financial systems have been split into centralized finance (CeFi) and decentralized finance (DeFi). CeFi is a traditional, bank-enabled finance system, while DeFi is based on cryptocurrencies and smart contracts.

However, a new system, "CeDeFi," a combination of centralized and decentralized finance, has emerged and is gaining traction. So, what is CeDeFi, and how does it work?

CeDeFi offers the same features as DeFi protocols while being centralized, allowing people to access DeFi products like decentralized exchanges (DEXs), liquidity aggregators, yield farming tools and lending protocols — yet still leveraging the advantages of CeFi systems.

Unlike DeFi, which is permissionless and available for use by anyone, CeDeFi projects lean more toward centralization. They are often governed by a single or small group of entities, which allows them more control (similar to a CeFi).

Overall, the CeDeFi ecosystem, which is a hybrid of the centralized and decentralized models, aims to improve the traditional cryptocurrency model to allow for faster transactions, improved security, a larger transaction volume and comparatively lower fees than traditional systems.