2025-08-30
In the traditional financial system, opening an account, applying for a loan, participating in investment and other financial activities often requires going through strict identity verification, asset proof and other processes, and a large number of users are rejected due to various thresholds. The rise of decentralized finance (DeFi) has brought about a new revolution. Among them, permissionless finance (Permissionless Finance), as one of the core concepts of DeFi, takes "openness, equality and freedom" as its tenet, and completely subverts the operation mode of traditional finance. So, what is permissionless finance in DeFi? How does it achieve permissionless financial operation? What opportunities does it bring to users?
Permissionless finance refers to the model in which users can freely participate in various financial activities without approval or authorization from centralized institutions in the DeFi ecosystem. Unlike traditional finance that relies on centralized institutions such as banks and stock exchanges, DeFi permissionless finance builds a completely open financial network based on blockchain technology and smart contracts. In this network, as long as users have an internet connection and encrypted wallet, they can participate in financial services such as lending, trading, and pledging anytime and anywhere without submitting cumbersome personal information or being limited by geography, identity, and asset size. For example, in permissionless decentralized lending protocols, anyone can mortgage crypto assets to borrow money or earn interest by providing funds, truly achieving the inclusiveness and fairness of Financial Services.
The operation of permissionless finance relies on the close collaboration between blockchain technology and smart contracts. The decentralization and transparency of blockchain ensure that all transaction records and protocol rules can be viewed and verified by anyone, eliminating the trust barriers of centralized institutions. Smart contracts, on the other hand, serve as "digital protocols" that automatically execute, pre-setting the rules and processes of financial activities. When a user initiates an operation, the smart contract will automatically verify whether the conditions are met, such as whether the pledged assets are sufficient, whether the counterparty meets the rules, etc. Once the conditions are met, the transaction will be executed immediately without human intervention. For example, in a decentralized exchange (DEX), users' transaction requests are automatically matched through smart contracts, and funds and tokens are settled in real-time. The entire process is open, transparent, and tamper-proof. In addition, the governance model of Decentralized Autonomous Organization (DAO) is also often applied to permissionless financial protocols, where community members participate in the upgrade and management of the protocol, further enhancing the openness and autonomy of the system. HashKey Exchange While exploring DeFi business innovation, it also actively embraces the concept of permissionless finance, optimizing the platform technology architecture to provide users with a more open and convenient entrance to Financial Services.
Permissionless finance has rich application scenarios in the DeFi field. In the lending field, permissionless lending protocols allow global users to freely participate in fund lending without worrying about being rejected due to insufficient credit records. In terms of decentralized trading, users can freely trade various encrypted assets on permissionless DEXs without restrictions on trading time and geography. In addition, permissionless finance has also given birth to innovative applications such as liquidity mining and synthetic asset publishing. Users can freely choose to participate in projects they are interested in and obtain profits by contributing liquidity and providing data. HashKey Exchange Following the development trend of permissionless finance, constantly expanding service boundaries, and helping users explore more investment opportunities in the permissionless DeFi ecosystem. However, it should be noted that while permissionless finance brings freedom, it also comes with risks such as smart contract vulnerabilities, market manipulation, and regulatory risks caused by anonymity. Users need to carefully evaluate and plan investment strategies when participating.