What is Decentralized Finance (DeFi)?

Decentralized finance (DeFi) is a major growth sector in blockchain that offers peer-to-peer (P2P) financial services and technologies built on protocols such as Ethereum, Cardano, Polkadot, and Solana. DeFi loans, investments, trades and swaps are typically transparent, permissionless, trustless, and interoperable. There is a growing DeFi trend that encourages decentralized governance methods and equitable stakeholder ownership for DeFi platform users. Platform composability in DeFi has resulted in unlocking value through interoperability with innovations like decentralized exchanges (DEXs), yield farming, liquidity tokens, and more.