Decentralized Finance - Page 8

Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that operates without central authorities or intermediaries, such as banks or brokers. It uses smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, to facilitate and automate financial transactions and services. DeFi aims to provide open, permissionless access to financial services, enabling users to lend, borrow, trade, and earn interest on cryptocurrencies and digital assets while retaining full control over their funds. This system promotes transparency and security, as all transactions are recorded on a public ledger. DeFi encompasses a wide range of services including decentralized exchanges (DEXs), lending platforms, stablecoins, and yield farming, thereby transforming traditional financial services into a more inclusive and accessible ecosystem.