DeFi

Financial services — lending, trading, derivatives — built from smart contracts rather than intermediaries, with users retaining custody of their assets.

Also called decentralised finance · decentralized finance

Financial services — lending, trading, derivatives — built from smart contracts rather than intermediaries, with users retaining custody of their assets.

Why it matters

Removing the intermediary also removes its protections: there is usually no deposit insurance, no reversal and no complaints process.

Related terms

Keep reading

Bridge A system for moving value between blockchains, typically locking an asset on one chain… Token A digital asset issued on an existing blockchain rather than having its own. Tokens… Layer 2 A network built on top of a base blockchain that processes transactions separately and… NFT A token representing a unique item rather than an interchangeable unit, recorded on a… Proof of Work A consensus method in which participants compete to solve a computational puzzle to add… Node A computer that keeps a copy of a blockchain and checks new transactions against…