decentralized finance

Decentralized finance (DeFi) refers to a financial system built on blockchain technology, which allows people to conduct financial transactions without traditional banks or intermediaries. Through smart contracts, self-executing agreements coded on the blockchain, users can lend, borrow, trade, and earn interest on their digital assets securely and transparently. This system enables greater access to financial services, lower costs, and enhanced privacy. By removing intermediaries, DeFi aims to create a more open, innovative, and user-controlled financial ecosystem. However, it also comes with risks, such as price volatility and potential technical vulnerabilities.