DeFi, or decentralized finance, refers to financial applications built with blockchain networks and smart contracts.
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Short definition
DeFi is deFi, or decentralized finance, refers to financial applications built with blockchain networks and smart contracts.
Simple explanation
DeFi can include DEXs, lending, borrowing, staking, liquidity pools, stablecoins, bridges, and yield tools.
Why it matters
DeFi expands crypto beyond simple transfers, but it also adds smart contract and user interaction risks.
Example context
A DeFi user may lend assets, provide liquidity, or swap tokens using smart contracts.