DeFi, short for decentralized finance, is a financial system built on blockchain technology that enables financial services to be provided in a decentralized, transparent, and open manner, without the need for intermediaries like banks or financial institutions. It is a rapidly growing sector of the blockchain industry, with a total value locked in DeFi protocols and applications reaching over $100 billion as of September 2021. DeFi applications and protocols offer a wide range of financial services, including lending, borrowing, trading, asset management, insurance, and more. These services are provided by smart contracts, which are self-executing digital contracts that automate the process of financial transactions, making them faster, cheaper, and more efficient than traditional financial services.
