#defi
DeFi (Decentralized Finance) refers to an ecosystem of financial applications built on blockchain, particularly on Ethereum, that enables the creation and execution of smart contracts without the intervention of traditional intermediaries, such as banks or financial institutions. At a technical level, DeFi is based on the technology of smart contracts, which are autonomous programs that automatically execute agreements when certain conditions are met, ensuring transparency and security.
The main objective of DeFi is to provide financial services such as loans, exchanges, insurance, and savings, in a decentralized manner and without relying on a centralized entity. Some of the main DeFi applications include DEX (decentralized exchanges), which allow trading cryptocurrencies without intermediaries, and Lending & Borrowing, where users can lend or borrow crypto assets through smart contracts.
In terms of infrastructure, DeFi uses protocols like Uniswap, Aave, MakerDAO, and Compound, which can operate without the need for central servers. Transactions are recorded on a public blockchain, which provides transparency, auditability, and resistance to censorship, although it also carries risks related to the security of smart contracts and the volatility of assets.