DeFi, or decentralized finance, is a set of financial applications built on blockchains that operate without banks or intermediaries.
You can lend, borrow, trade, earn interest and provide liquidity directly from your wallet, using smart contracts instead of institutions.
Smart contracts hold funds and execute rules automatically. Users interact with these contracts through apps called dApps, often on Ethereum and other chains.
DeFi is open to anyone with a wallet, operates around the clock, and gives users full control of their funds.
DeFi carries smart-contract risk, hacks, volatility and the possibility of user error. There is no customer support to reverse a mistake.
DeFi is a powerful, permissionless alternative to traditional finance, but it rewards those who understand the risks.