What is #DeFi ?

#DeFi, short for Decentralized Finance, refers to a category of financial applications and platforms built on #blockchain technology. It aims to recreate traditional financial systems and services, such as lending, borrowing, trading, and investing, in a #decentralized and permissionless manner, without the need for intermediaries like banks or #financial institutions.

In #DeFi, smart contracts are used to automate and execute financial transactions, allowing users to interact directly with the protocol using their digital assets. This eliminates the need for traditional intermediaries, reduces costs, and provides greater accessibility and financial inclusivity.

Key characteristics of #DeFi include open and transparent protocols, #permissionless access, composability (the ability to combine different #DeFi protocols and services), and the use of cryptocurrency or digital assets as #collateral or means of exchange.

#DeFi has gained significant popularity and growth in recent years, offering users opportunities to earn passive income, participate in #yield farming, access decentralized exchanges, and engage in other #innovative financial activities within the cryptocurrency #ecosystem.