Decentralised Finance (DeFi)

Decentralised Finance (DeFi) refers to a set of financial services and applications built on blockchain technology, particularly on decentralised networks. DeFi aims to recreate and improve traditional financial systems, such as banking, lending, trading, and more, by leveraging decentralised and open-source technologies.

DeFi relies on smart contracts, which are self-executing contracts with the terms directly written into code. Smart contracts automate various financial processes and eliminate the need for intermediaries.

Moreover, with DeFi, users can trade on decentralised platforms directly from their wallets, and liquidity is often provided by decentralised liquidity pools.

DeFi platforms allow users to lend their cryptocurrencies and earn interest or borrow assets using their crypto holdings as collateral.