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UNIWhat is DeFi?
DeFi (Decentralised Finance): a crypto term, explained in plain English.
Financial services such as lending, borrowing and trading that run on blockchain smart contracts instead of through a bank or broker.
Crypto Reviewed by Keshav Aggarwal · Updated
In simple words
Imagine a vending machine that lends you money. You put in your coins as a guarantee, press a button and the machine lends you something. No shopkeeper decides.
DeFi is a set of such machines, built from code on a blockchain.
The technical side
Decentralised finance uses smart contracts, mostly on Ethereum and its layer 2 networks, to offer exchanges (Uniswap), lending markets (Aave), stablecoins and more. Anyone with a crypto wallet can use them, and the rules are written in public code rather than set by a company.
The value locked in DeFi rises and falls with crypto prices. Risks include bugs in contracts, hacks and sudden price moves that trigger liquidations; see our Crypto hacks tracker.
DeFi kya hai?
DeFi matlab bina bank ke lena-dena: loan, trading, interest, sab blockchain pe code se chalta hai. Bas wallet chahiye, par risk bhi zyada hai.
Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.