#DeFiGetsGraded **Decentralized Finance (DeFi)** is a blockchain-based financial system that eliminates intermediaries like banks, enabling peer-to-peer transactions via smart contracts. Built primarily on Ethereum, DeFi offers services such as lending, borrowing, trading, and yield farming in a permissionless, transparent manner. Users retain control of their assets through non-custodial wallets like MetaMask. Key protocols include Uniswap (DEX), Aave (lending), and MakerDAO (stablecoins). While DeFi promotes financial inclusion and high yields, it also carries risks like smart contract vulnerabilities, impermanent loss, and regulatory uncertainty. The Total Value Locked (TVL) in DeFi often reflects its growth, surpassing $100 billion during peaks. Despite challenges, DeFi continues to innovate, shaping the future of open, decentralized finance.