Decentralized finance (DeFi)

Decentralized finance (DeFi) refers to a new financial system built on top of the Ethereum blockchain, where financial activities are conducted in a decentralized and open manner without intermediaries such as banks, brokerages, or insurance companies. The primary goal of DeFi is to provide open access to a range of financial products and services to anyone around the world, including those who are unbanked or underserved by traditional financial institutions. Decentralization allows for peer-to-peer transactions without intermediaries, which helps to reduce costs, increase security, and create more transparent and trustworthy financial systems. It also allows for the creation of new financial instruments, such as decentralized exchanges, lending and borrowing platforms, insurance, and prediction markets. DeFi has gained significant attention in recent years as an innovative way to democratize finance and create new opportunities for both investors and users. It has the potential to disrupt traditional financial systems by offering more open, transparent and accessible financial services that can be used by anyone, anywhere in the world.