What is DeFi?

DeFi, short for decentralized finance, is an emerging financial system built on blockchain technology. It aims to be an alternative to traditional centralized financial systems controlled by banks and institutions.

DeFi allows you to participate in financial activities like borrowing, lending, and trading cryptocurrencies directly with others.

However, instead of directly interacting with people, DeFi utilizes peer-to-peer transactions facilitated by smart contracts, which are self-executing agreements on the blockchain. This eliminates the need for intermediaries like banks and makes DeFi permissionless, meaning anyone with an internet connection can participate.