DeFi stands for decentralized finance, which refers to a financial system built on a decentralized, blockchain-based network. In DeFi, financial transactions such as lending, borrowing, trading, and investing can be conducted without the involvement of traditional financial intermediaries like banks and other financial institutions.
The DeFi ecosystem is powered by blockchain technology, which enables smart contracts and decentralized applications (DApps) to be built, facilitating a range of financial activities. DeFi has gained popularity in recent years due to its potential to offer greater financial inclusivity, transparency, and accessibility, as well as the ability to operate with lower fees and faster transaction times than traditional finance.
