DeFi

DeFi (Decentralised Finance) refers to a suite of financial applications built on smart-contract blockchains — primarily Ethereum — that replicate and reinvent traditional financial services (lending, borrowing, trading, derivatives, insurance) without banks, brokers, or other intermediaries.

DeFi protocols are governed by immutable or upgradeable smart contracts that enforce rules automatically. Anyone with a wallet and an internet connection can access them, regardless of geography or credit history. Total Value Locked (TVL) is the common metric for the sector's size.

Key risks include smart-contract bugs, oracle manipulation, governance attacks, and regulatory uncertainty. The transparency of on-chain code is both a security asset (anyone can audit it) and a liability (exploits can be planned carefully before execution).