What does defi mean crypto?
DeFi, short for decentralized finance, is a term used to describe a variety of financial applications and platforms that leverage blockchain technology and cryptocurrencies to provide decentralized alternatives to traditional financial intermediaries and services. Unlike traditional finance, which relies on centralized institutions such as banks or exchanges, DeFi projects aim to create open, permissionless, and trustless systems that allow for peer-to-peer transactions and financial operations.
Some key characteristics of DeFi include the use of smart contracts, which automate and enforce the terms of transactions, and the ability to interact with these platforms directly from a cryptocurrency wallet. DeFi encompasses a wide range of applications, such as decentralized lending and borrowing, decentralized exchanges, yield farming, automated market makers, stablecoins, and more.
Overall, DeFi represents a paradigm shift in the financial industry, offering greater financial inclusion, transparency, and accessibility to individuals around the world.
Last updated 10/17/2023, 8:39:07 AM
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