Decentralized Finance(DeFi)
Financial services built on blockchain technology that operate without traditional intermediaries.
In-Depth Explanation
DeFi encompasses lending, trading, derivatives, insurance, and more—all through smart contracts. Key properties: permissionless access, self-custody, transparency, and composability. DeFi enables 24/7 global markets but introduces smart contract risk and can be complex to use safely.
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Related Terms
Smart Contract
Self-executing code deployed on a blockchain that automatically enforces agreement terms when conditions are met.
Automated Market Maker
AMMA smart contract that provides liquidity and enables trading using a mathematical formula instead of an order book.
Lending Protocol
A DeFi application that matches lenders with borrowers through smart contracts, enabling permissionless borrowing and lending.
More in DeFi Primitives
View all →Automated Market Maker
AMMA smart contract that provides liquidity and enables trading using a mathematical formula instead of an order book.
Liquidity Pool
LPA smart contract holding paired assets that enables trading, lending, or other DeFi activities.
Collateralized Debt Position
CDPA loan where users deposit collateral to mint or borrow assets, with liquidation risk if collateral value falls.
Lending Protocol
A DeFi application that matches lenders with borrowers through smart contracts, enabling permissionless borrowing and lending.