DeFi is a term for financial services on blockchain that eliminate intermediaries like banks and brokers.
Decentralized finance, often abbreviated as DeFi, refers to the use of blockchain technology and cryptocurrencies to recreate and improve upon traditional financial systems. It includes decentralized applications (DApps) built on a blockchain that provide financial services like lending, borrowing, and trading. DeFi applications aim to disrupt the traditional financial world by providing open, permissionless, and highly interoperable protocols. The majority of DeFi applications are built on the Ethereum network, leveraging its smart contract capabilities to create programmable, automated, and trustless financial services.
Examples of DeFi applications include lending and borrowing platforms like Compound and Aave, decentralized exchanges (DEXs) like Uniswap and SushiSwap, and yield farming platforms like Yearn.finance.
