What is defi in the crypto world?

DeFi, short for decentralized finance, refers to a set of financial applications built on a blockchain network, typically Ethereum. It aims to provide open and permissionless financial services to anyone with an internet connection, without the need for intermediaries like banks or brokers.

DeFi applications commonly offer services such as lending and borrowing, decentralized exchanges, yield farming, and stablecoins. These applications are made possible by using smart contracts, which are self-executing contracts with terms and conditions directly written into code.

DeFi has gained significant popularity in the crypto world due to its potential to provide financial inclusion, transparency, and programmability, but it also comes with risks and challenges such as smart contract vulnerabilities and regulatory concerns.

Last updated 10/25/2023, 12:17:54 PM

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