A financial ecosystem known as “decentralized finance” (DeFi) is one that runs without the use of middlemen like banks or other conventional financial institutions and is based on blockchain technology. Decentralized financial infrastructure (DeFi) systems use decentralized applications (DApps) and smart contracts to offer a range of financial services, such as lending, borrowing, trading, and yield farming.
In contrast to traditional financial systems, DeFi participants have direct control over their assets and can use these services with more transparency, security, and frequently reduced costs.