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DeFi
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DeFi (Decentralized Finance) refers to financial services built on blockchain technology that operate without traditional intermediaries like banks.
Simple Explanation
DeFi is like traditional banking (loans, savings, trading) but without the bank. Instead of a company managing your money, smart contracts on the blockchain do it automatically.
What You Can Do
- Lend & Borrow: Earn interest or get loans without a bank
- Trade: Exchange cryptocurrencies without a broker
- Earn Yield: Provide liquidity and earn fees
- Save: Earn interest on your crypto holdings
Benefits
- Accessible: Anyone with internet can participate
- Transparent: All transactions are public
- Permissionless: No approval needed to use
Risks
DeFi involves risks including smart contract bugs, market volatility, and potential loss of funds.