DeFi, or Decentralized Finance, refers to a financial system that operates on a decentralized blockchain network, such as Ethereum. DeFi applications use smart contracts to automate financial transactions without the need for intermediaries or central authorities, providing greater transparency and accessibility. DeFi includes a range of financial applications such as lending, borrowing, trading, and insurance, among others.

These applications are built on open-source protocols and can be accessed by anyone with an internet connection and a compatible wallet. DeFi is also permissionless, meaning that anyone can participate in the network without needing permission or approval from a central authority. As DeFi continues to grow and mature, it has the potential to disrupt traditional finance by offering more inclusive and accessible financial services to individuals and businesses around the world.