Decentralised Finance (DeFi)

Definition

A financial ecosystem built on blockchain technology that provides financial services — including lending, borrowing, trading, insurance, and asset management — without traditional intermediaries such as banks, brokerages, or exchanges. DeFi protocols use smart contracts to automate financial transactions and are typically open-source, permissionless, and composable. While offering innovation in financial inclusion and efficiency, DeFi presents significant regulatory, security, and valuation challenges.