DeFi is a system of financial services like lending and trading built on blockchains that run without banks or central intermediaries.
DeFi, short for decentralized finance, refers to financial applications built on public blockchains that operate without traditional intermediaries like banks or brokers.
Through smart contracts, DeFi lets users lend, borrow, trade, earn yield, and provide liquidity directly from their own wallets. The code enforces the rules automatically, and anyone with an internet connection can participate.
The appeal is openness, transparency, and control: you hold your own assets and can verify how protocols work on-chain. Popular DeFi activities include decentralised exchanges, lending platforms, and yield farming.
DeFi also carries real risks, including smart-contract bugs, hacks, volatile collateral, and complex mechanics. Users should research protocols carefully and understand that there is often no safety net if something goes wrong.
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