'%3e%3cpath%20fill='%23ffffff'%20d='M%2087.636719%20131.8125%20L%2087.632812%20131.796875%20M%20344.1875%20153.058594%20L%20344.238281%20153.042969%20L%20344.144531%20153.042969%20L%20273.226562%20126.554688%20L%20273.1875%20126.507812%20L%20273.128906%20126.519531%20L%20224.152344%20108.226562%20L%20224.132812%20108.21875%20L%20224.113281%20108.175781%20L%20224.046875%20108.1875%20L%20187.472656%2094.527344%20L%20187.488281%2094.5%20L%20128.769531%20116.429688%20L%2087.625%20131.800781%20L%2030.746094%20153.042969%20L%20104.796875%20180.699219%20L%20107.859375%20181.84375%20L%20150.726562%20197.855469%20L%20187.488281%20211.585938%20L%20229.398438%20195.933594%20L%20267.121094%20181.84375%20L%20276.933594%20178.179688%20L%20344.167969%20153.066406%20L%20344.214844%20153.066406%20L%20344.1875%20153.058594%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3c/g%3e%3cpath%20fill='%23ffffff'%20d='M%20107.859375%20188.507812%20L%20107.859375%20219.835938%20L%20107.863281%20219.835938%20C%20107.863281%20219.859375%20107.859375%20219.882812%20107.859375%20219.910156%20C%20107.859375%20232.941406%20116.6875%20244.746094%20130.972656%20253.316406%20C%20145.398438%20261.976562%20165.390625%20267.34375%20187.488281%20267.34375%20C%20190.335938%20267.34375%20193.144531%20267.25%20195.914062%20267.078125%20L%20195.914062%20267.074219%20C%20217.316406%20265.738281%20236.1875%20259.347656%20249.117188%20249.945312%20C%20260.367188%20241.765625%20267.121094%20231.308594%20267.121094%20219.910156%20C%20267.121094%20219.882812%20267.117188%20219.859375%20267.117188%20219.835938%20L%20267.121094%20219.835938%20L%20267.121094%20188.507812%20L%20187.488281%20218.25%20L%20107.859375%20188.507812%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3cg%20clip-path='url(%236691404858)'%3e%3cpath%20fill='%23ffffff'%20d='M%2092.464844%20259.238281%20L%2092.421875%20258.8125%20L%2089.839844%20231.960938%20L%2089.726562%20230.78125%20L%2088.480469%20217.851562%20L%2089.527344%20217.851562%20L%2089.527344%20203.476562%20C%2090.964844%20202.183594%2091.875%20200.3125%2091.875%20198.222656%20C%2091.875%20197.152344%2091.636719%20196.140625%2091.210938%20195.234375%20C%2090.515625%20193.757812%2089.328125%20192.558594%2087.859375%20191.851562%20L%2087.859375%20174.375%20L%2081.617188%20172.046875%20L%2081.617188%20191.910156%20C%2079.3125%20193.078125%2077.726562%20195.460938%2077.726562%20198.222656%20C%2077.726562%20200.3125%2078.636719%20202.183594%2080.078125%20203.476562%20L%2080.078125%20217.851562%20L%2081.21875%20217.851562%20L%2080.464844%20225.59375%20L%2079.523438%20235.222656%20L%2077.203125%20258.945312%20L%2077.195312%20259.027344%20L%2075.9375%20271.894531%20L%2074.8125%20283.398438%20C%2074.785156%20283.648438%2074.78125%20283.929688%2074.8125%20284.183594%20C%2075.191406%20287.339844%2079.96875%20289.722656%2085.484375%20289.503906%20C%2091%20289.292969%2095.167969%20286.558594%2094.789062%20283.398438%20L%2092.464844%20259.238281%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3c/g%3e%3c/svg%3e)
← Back to GlossaryDeFiLearn more in the Academy →
What is DeFi (Decentralized Finance)?
डीफाईDeFi is a financial system built on blockchain that replaces banks and brokers with smart contracts. It enables lending, borrowing, trading, and earning interest without intermediaries.
Full Explanation
Decentralized Finance (DeFi) refers to financial applications built on blockchain networks (primarily Ethereum) that replicate and improve upon traditional financial services without centralized intermediaries. DeFi includes: decentralized exchanges (Uniswap), lending/borrowing (Aave, Compound), stablecoins (USDC, DAI), yield farming, liquidity pools, and synthetic assets. Users interact directly via their wallets. Total Value Locked (TVL) in DeFi protocols reached $200+ billion at peak. Key risks: smart contract bugs, impermanent loss, and protocol exploits.
Example
Instead of earning 3-4% in a bank FD, you could supply USDC to Aave and earn 5-10% APY, but with smart contract risk. Always research protocols before depositing.