DeFi

DeFi (decentralized finance) is an ecosystem of blockchain-based financial applications that allows users to access banking services without intermediaries such as banks or financial institutions. Using smart contracts, DeFi enables lending, asset trading, staking, and earning interest on cryptocurrencies without relying on centralized entities.

A key advantage of DeFi is its openness—anyone with internet access and a cryptocurrency wallet can use these services without undergoing verification procedures. However, due to the lack of regulation and security measures, DeFi also carries risks related to fraud, smart contract vulnerabilities, and market volatility.