Decentralized Finance — financial services like lending, borrowing, and earning interest, built on blockchain and available to anyone without needing a bank.
Think of it like banking services that run on software instead of through a bank branch — open 24/7 to anyone with an internet connection.
DeFi gives you more control over your money and can offer better rates than traditional banks, but you're also fully responsible for your own security.
Watch out for DeFi platforms that haven't been audited by reputable security firms — bugs in the code can lead to lost funds with no customer support to call.
A Decentralized Exchange — a platform where you trade crypto directly with other users through smart contracts, with no company in the middle.
A shared pot of crypto tokens locked in a smart contract that enables trading on a decentralized exchange — users deposit tokens and earn fees in return.
A program stored on a blockchain that automatically executes an agreement when specific conditions are met, without needing a middleman.
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