DeFi, or Decentralized Finance, are like digital banks that don't have bosses, offices or schedules. Everything works thanks to automatic programs called Smart Contracts on blockchain. You can lend, borrow, earn interest or exchange cryptocurrency without having to ask anyone for permission or depending on a bank.

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DeFi (Decentralized Finance) is an ecosystem composed of protocols, platforms and financial services developed on public blockchains (mainly Ethereum and EVM-compatible networks) that allow users to access products such as loans, exchanges, insurance, derivatives and savings accounts, all in a way programmed, automated and without centralized intermediaries.

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These services are executed through Smart Contracts that:

• They manage digital assets (tokens).
• They execute business logic in an immutable and transparent way.
• They interact with each other through open, composable standards.

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Key examples of DeFi protocols include:

• Decentralized Exchanges (DEX) such as Uniswap, SushiSwap, or Curve.
• Lending and collateralization platforms such as Aave, Compound or MakerDAO.
• Decentralized stablecoins such as DAI or LUSD.
• Liquidity providers and farming like Yearn, Balancer or Convex.
• Derivative, safe or synthetic active protocols such as Synthetix or Nexus Mutual.

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Among the features that define DeFi:

• No custody: the user maintains full control over their funds through their wallet.
• Global access without permissions: Anyone with an internet connection can participate.
• Interoperability: the protocols are combined together like “money legos”.
• Full automation: The rules are programmed and executed without human intervention.
• Full transparency: The code and transactions are publicly available on the blockchain.

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DeFi proposes a structural transformation of the traditional financial system, opening up access to advanced services without the need for bank accounts, credit history or nationality. However, it also faces significant risks related to malicious code, exploits, impermanent losses, manipulable oracles and regulatory environments that are still uncertain.

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