Decentralized Finance (DeFi) refers to a financial system built on blockchain technology that operates without traditional intermediaries like banks. It allows users to lend, borrow, trade, and earn interest on their assets.

Key Components of DeFi

• Smart Contracts: Self-executing contracts with the terms of the agreement directly written into code.
• Liquidity Pools: Collections of funds locked in a smart contract that provide liquidity for trading.
• Yield Farming: The practice of staking or lending crypto assets to generate high returns.

DeFi is revolutionizing the financial landscape by making financial services more accessible and efficient.