DeFi, short for decentralized finance, refers to a financial system built on top of blockchain technology that operates without intermediaries such as banks or financial institutions. Instead, DeFi protocols use smart contracts to automate financial transactions and provide users with more control over their assets.
The number of DeFi users has been steadily increasing over the past few years, with more people becoming interested in the potential benefits of decentralized finance, such as higher yields on investments, lower transaction fees, and increased privacy.
Some popular DeFi protocols include Uniswap, Aave, and Compound, which allow users to trade cryptocurrencies, borrow and lend assets, and earn interest on their holdings.
Overall, DeFi has the potential to disrupt traditional finance and create a more accessible and inclusive financial system for everyone.