DeFi: definition and meaning
DeFi, short for decentralized finance, is a set of financial services such as trading and lending built on smart contracts.
Why it matters
It is open to anyone with a wallet, but it carries smart-contract, scam and liquidation risks.
Related terms
- Smart contract
A smart contract is a program stored on a blockchain that runs automatically when its cond… - Liquidity
Liquidity is how easily an asset can be bought or sold without moving its price much.… - Automated market maker
An automated market maker (AMM) is a decentralized exchange design that prices trades usin…
Guides that explain more
Educational content only, not financial advice.