#DeFiGetsGraded

DeFi, or decentralized finance, is an innovative financial system built on public blockchains. It removes the need for traditional intermediaries like banks and brokers, replacing them with smart contracts—self-executing code that automates transactions. Users can lend, borrow, trade, and earn interest on their crypto assets directly with one another.

This peer-to-peer approach offers several benefits, including global accessibility 🌎, increased transparency, and potentially higher yields. However, it also presents significant risks, such as high volatility, security vulnerabilities, and a lack of regulatory oversight. Despite the risks, DeFi continues to evolve, pushing the boundaries of traditional finance and opening up new possibilities for financial inclusion and innovation.