DeFi (decentralized finance) is a system of financial services built on the blockchain, where there are no intermediaries like banks and brokers. Everything that financial institutions used to do can now operate through smart contracts: automatically, transparently, and without trust in a third party.
What DeFi includes:
-Decentralized exchanges (DEX)
-Lending and borrowing without banks
-Stablecoins
-Yield farming
-Blockchain insurance
The main idea of DeFi is to give people complete control over their money, without reliance on governments, banks, or corporations. All transactions occur through open code, which means they can be verified and used anywhere in the world.
Why this is important:
-Access for everyone with internet
-Minimal fees and waiting times
-Financial freedom and independence.