DeFi is a fast‑growing ecosystem of financial applications built on blockchain. No banks, no brokers – just code. Learn what DeFi is, how it works, and the opportunities (and risks) it offers.
Decentralised Finance, or DeFi, refers to financial services that run on public blockchains, mainly Ethereum. Instead of relying on a central authority (like a bank), DeFi uses smart contracts – self‑executing code – to facilitate lending, borrowing, trading, and earning interest.
Anyone with an internet connection and a crypto wallet can access DeFi protocols. Your funds remain in your control (self‑custody) until you interact with a smart contract. But with great power comes great responsibility – and risk.
Protocols like Aave and Compound let you lend crypto to earn interest, or borrow against your holdings. Rates are determined algorithmically by supply and demand.
Uniswap, Curve, and others allow token swaps directly from your wallet. No order book – you trade against liquidity pools funded by users.
DAI, USDC, and others are cryptocurrencies pegged to a stable asset (like the USD). They’re essential for trading and earning without volatility.
Providing liquidity to protocols in exchange for fees and sometimes extra governance tokens. Can be lucrative but comes with impermanent loss and smart contract risk.
Start small! Only invest what you can afford to lose, and consider using well‑audited, established protocols.
See how your crypto could grow in a DeFi lending protocol. Enter an amount and APY to see potential earnings – remember, APYs can change and risks exist.
💡 APYs are variable and not guaranteed. This is a simplified illustration.