Decentralized Finance or DeFi

Decentralized Finance, commonly called DeFi, is a financial system built on blockchain technology that aims to provide open, permissionless, and inclusive financial services to anyone with an internet connection. Unlike traditional centralized financial systems that rely on intermediaries like banks and brokers, DeFi operates on decentralized networks, primarily utilizing smart contracts on platforms like Ethereum. DeFi applications aim to replicate and enhance various traditional financial services, such as lending, borrowing, trading, asset management, and more, but in a decentralized manner. These applications are typically open-source and transparent, allowing users to interact directly with the protocols using their digital wallets without the need for intermediaries or trusted third parties.