Decentralized Finance, or DeFi, refers to a financial system built on blockchain technology that operates without traditional banks or intermediaries. It aims to recreate and enhance conventional financial services such as lending, borrowing, trading, and earning interest.In DeFi, users can interact directly with smart contracts, which are self-executing agreements coded on the blockchain. This allows individuals to access financial services in a trustless environment, meaning they don’t need to rely on third parties.Key features of DeFi include transparency, as all transactions are recorded on a public ledger, and the ability to access services globally without geographic restrictions. Users can engage with decentralized applications (dApps) that provide various functionalities, from liquidity pools to yield farming.The rapid growth of DeFi has created new opportunities for users to manage financial assets more efficiently, but it also comes with risks, such as smart contract vulnerabilities and market volatility. Overall, DeFi represents a shift towards more open and inclusive financial systems.