DeFi (Decentralized Finance) revolutionizes traditional finance by removing intermediaries like banks through blockchain technology. It enables users to lend, borrow, trade, and earn interest using smart contracts on platforms like Ethereum. DeFi projects offer transparency, accessibility, and control over assets, often with lower fees. Popular protocols include Uniswap, Aave, and Compound. Users interact via crypto wallets, maintaining custody of their funds. While DeFi brings innovation and financial freedom, it also carries risks such as smart contract bugs, price volatility, and regulatory uncertainty. As the ecosystem matures, DeFi continues to reshape the future of global finance with open, permissionless systems.
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