The term “DeFi” is a combination of two words: decentralised and finance. In short, DeFi is a means for making financial products accessible on a decentralised and public blockchain network. Instead of going through intermediaries such as brokerage firms or banks, anyone can access and use DeFi.
DeFi 2.0 is a new term in the blockchain industry that refers to a subset of DeFi protocols that are based on previous DeFi breakthroughs such as yield farming, lending, and other things. Many on-chain systems that use native tokens have liquidity issues, which is a key emphasis of significant DeFi 2.0 implementations.
DeFi 2.0 is basically a programme aimed at improving and resolving these issues. It will also be required to follow new government compliance requirements and standards such as AML and KYC. Several projects, like Solana, Ethereum, Binance Smart Chain, and other smart contract blockchains, are effectively integrating DeFi 2.0 services.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://cryptoshrypto.com/what-is-defi-2-0/&media=https://cryptoshrypto.com/wp-content/uploads/2022/04/defi-2.0.gif&description=The term "DeFi" is a combination of two words: decentralised and finance. In short, DeFi is a means for making financial products){kind=link}