Decentralized Finance (DeFi) refers to financial applications built on blockchain technology that allow people to lend, borrow, trade, and earn interest on their cryptocurrency holdings without relying on traditional financial institutions like banks. These applications are accessible through decentralized platforms that run on smart contracts.
The benefits of DeFi include lower transaction costs, faster processing times, and increased accessibility, especially for those who don’t have access to traditional banking services. However, DeFi also comes with risks, including the potential for smart contract bugs or vulnerabilities.
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