DeFi (Decentralized Finance)
Also known as: Decentralized Finance, Open Finance, Blockchain Finance, Permissionless Finance
DeFi, or Decentralized Finance, refers to blockchain-based financial applications that operate without banks or intermediaries.
DeFi (Decentralized Finance) is a blockchain-based ecosystem that offers financial services—such as lending, borrowing, trading, and insurance—without relying on banks or traditional intermediaries. Built mostly on Ethereum, DeFi platforms use smart contracts to automate transactions and enable peer-to-peer interactions.
With 24/7 access and no geographic restrictions, DeFi aims to create a transparent, open, and inclusive financial system. Core components include decentralized exchanges (DEXs), lending protocols, stablecoins, yield farming, and insurance dApps.
While DeFi unlocks powerful financial innovation, users face risks like smart contract bugs, market volatility, and regulatory uncertainty.