Decentralized Finance (DeFi) is a blockchain-based financial system that enables users to access financial services without traditional banks or intermediaries. By using smart contracts on blockchain networks like Ethereum, DeFi applications provide lending, borrowing, trading, yield farming, and staking in a transparent and open manner.

One common use case for DeFi is peer-to-peer lending, where users can lend or borrow assets directly from others without needing a bank. Another example is decentralized exchanges (DEXs), which allow users to trade cryptocurrencies without relying on centralized exchanges. DeFi also supports yield farming, where users earn rewards by providing liquidity to protocols.

Key Benefits:

• No Middlemen – Transactions occur directly between users via smart contracts.
• Transparency & Security – All transactions are recorded on the blockchain, ensuring trust.
• Global Accessibility – Anyone with an internet connection can access DeFi services.
• Financial Inclusion – Enables people without access to traditional banking to participate in financial markets.