Back to Glossary
crypto-web3intermediateunit-11
DeFi
Definition
Decentralized finance: financial products built with blockchain-based protocols rather than traditional intermediaries.
In Plain English
DeFi is like financial software that runs by public rules instead of through a bank portal.
Real-World Example
A DeFi app may support lending, trading, staking, or liquidity pools.
Why It Matters for Your Work
DeFi can create open access and automation, but it also introduces smart contract, liquidity, and regulatory risk.
Common Mistake
Assuming decentralized means safe or regulation-free.
Related Terms
View Smart Contract
Smart Contract
Code on a blockchain that automatically executes rules or transactions.
View Liquidity
Liquidity
How easily an asset can be bought or sold without significantly moving its price.
View Tokenomics
Tokenomics
The economic design of a token, including supply, incentives, distribution, and utility.