Decentralized Finance (DeFi) is an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.

DeFi draws inspiration from blockchain, the technology behind the digital currency bitcoin, which allows several entities to hold a copy of a history of transactions, meaning it isn’t controlled by a single, central source.

Important components of DeFi:

  1. Stablecoins
  2. Exchanges
  3. Lending