CeFi
Technology & Computing abbreviation · Cryptocurrency & Blockchain
| Stands for | Centralized finance |
|---|---|
| Categories | Technology & Computing |
CeFi stands for Centralized finance, a cryptocurrency & blockchain abbreviation.
Crypto financial services run by companies that take custody of customers' funds, such as centralized exchanges and crypto lending platforms, in contrast to decentralized protocols operated by smart contracts.
Example: After the CeFi lenders froze withdrawals, many users moved their coins to self-custody.
Usage notes
The term became prominent during the 2022 collapses of the lenders Celsius, Voyager and BlockFi and of the exchange FTX, which showed the risks of trusting companies with deposits. CeFi platforms usually require identity checks and offer customer support and bank on-ramps that DeFi lacks.
Related abbreviations
More cryptocurrency & blockchain abbreviations
- BIP – Bitcoin Improvement Proposal
- BNB – BNB (formerly Binance Coin)
- BTC – Bitcoin
- BTFD – Buy the f***ing dip
- CBDC – Central bank digital currency
- CDP – Collateralized debt position
- CEX – Centralized exchange
- DAO – Decentralized autonomous organization
- DApp – Decentralized application
- DCA – Dollar-cost averaging
- DeFi – Decentralized finance
- DePIN – Decentralized physical infrastructure networks