DeFi

Decentralized Finance, or DeFi, is a collection of financial applications built on blockchain networks, primarily Ethereum. Instead of relying on banks or intermediaries, DeFi uses smart contracts to enable direct peer-to-peer transactions, lending, trading, and investment. Users interact with protocols like Uniswap, Aave, or Compound to earn interest, provide liquidity, and trade digital assets seamlessly across borders.

What makes DeFi revolutionary is its openness — anyone with an internet connection can access financial services without needing bank accounts or credit checks. While DeFi has introduced new opportunities for earning passive income and building decentralized markets, it also comes with risks such as protocol hacks, volatility, and regulatory uncertainty. Despite these challenges, DeFi is seen as one of the strongest drivers of Web3 adoption and innovation.