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DeFi

Decentralized Finance

What is DeFi?

Financial services built on blockchain, lending, trading, yield farming, without banks or intermediaries. For marketers, DeFi protocols are some of the most active communities in Web3. Understanding the basics is table stakes for any Web3 consultant.

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In plain words

"A bank that runs itself — no tellers, no hours, no paperwork. Just code and your wallet."

How it works

Key takeaways

  • No intermediaries — you control your funds

  • Open 24/7, global, permissionless

  • Smart contracts replace traditional agreements

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Real-world example

You lend USDC on Aave. Borrowers pay interest. You earn yield — no middleman, no bank approval.

Related terms

Smart Contracts

Self-executing code that automates agreements

Yield Farming

Earning rewards by providing liquidity to DeFi

Liquidity

How easily an asset can be bought or sold

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