CeFi stands for Centralized Finance, referring to financial services in the crypto space that are managed by centralized entities. These platforms act as intermediaries between users and the financial services they provide, such as lending, borrowing, and trading.In CeFi, users typically deposit their assets into a platform that controls the funds, ensuring liquidity and facilitating transactions. This setup allows for user-friendly interfaces and quicker transaction times compared to decentralized options. However, it also introduces risks like counterparty risk, where users must trust the platform to manage their assets securely.Examples of CeFi platforms include exchanges and lending services where users can earn interest on their crypto by lending it to others. While CeFi offers convenience and a familiar structure, it often comes at the cost of reduced privacy and greater regulatory scrutiny.Ultimately, CeFi contrasts with DeFi (Decentralized Finance), which aims to create a more open and user-controlled financial ecosystem by removing intermediaries.