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Glossary/Decentralized Finance (DeFi)

Decentralized Finance (DeFi)

A sector of blockchain-based applications designed to eliminate traditional financial intermediaries, offering services like lending, borrowing, and trading.

DeFi protocols replicate bank-like services — exchanges, loans, interest — as open smart contracts anyone can use. Liquidity pools, AMMs, and stablecoins are its core building blocks, but smart contract bugs and market risk are real.