DeFi, or Decentralized Finance, is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains.
Key DeFi Components:
- Decentralized Exchanges (DEXs)
- Lending and Borrowing Platforms
- Stablecoins
- Yield Farming
- Liquidity Mining