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Centralised Finance (CEFI)

Centralised Finance (CEFI)

Centralised Finance (CEFI) refers to traditional financial systems and services that operate in a centralized manner, relying on intermediaries such as banks, financial institutions, and regulatory authorities to facilitate transactions and manage financial activities.

CEFI encompasses a wide range of financial services, including banking, lending, asset management, and payment processing, that are governed by centralized entities and regulatory frameworks. While CEFI has been the dominant model in the financial industry for decades, the emergence of decentralized finance (DeFi) has introduced alternative systems that aim to decentralize and democratize financial services through blockchain technology and smart contracts. CEFI and DeFi represent contrasting approaches to finance, with CEFI emphasizing centralized control, regulatory compliance, and institutional oversight, while DeFi promotes decentralization, transparency, and peer-to-peer interactions in the financial ecosystem

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Plena Finance operates within the decentralized finance (DeFi) ecosystem, which contrasts with Centralized Finance (CeFi) by leveraging blockchain technology and smart contracts to offer financial services without the need for intermediaries. Unlike CeFi platforms, which rely on centralized control and custody of user assets, Plena Finance provides users with a self-custodial wallet and tools to interact directly with decentralized protocols, decentralized exchanges (DEXs), and liquidity pools