What is DeFi?
DeFi (Decentralized Finance) refers to financial services built on blockchain technology that operate without traditional intermediaries.
Core Principles
**Permissionless**: Anyone can participate**Transparent**: All code and transactions are public**Non-custodial**: You control your own funds**Composable**: Protocols can be combined like "money legos"Traditional Finance vs DeFi
| Aspect | Traditional | DeFi |
|--------|-------------|------|
| Access | Bank accounts, ID | Wallet only |
| Control | Institutions | Users |
| Transparency | Opaque | Open-source |
| Hours | Business hours | 24/7/365 |
| Speed | Days | Minutes |
Key DeFi Categories
Lending & Borrowing
Deposit crypto to earn interestBorrow against your holdingsExamples: Aave, CompoundDecentralized Exchanges
Trade without intermediariesAutomated Market Makers (AMMs)Examples: Uniswap, SushiSwapStablecoins
Crypto pegged to fiat currenciesExamples: USDC, DAIYield Farming
Earn rewards for providing liquidityComplex strategies for higher returns