@noonishbunnies
Decentralized Finance (DeFi) is a movement that leverages blockchain technology to recreate traditional financial systems—such as lending, borrowing, trading, and insurance—without relying on central intermediaries like banks or brokers. DeFi platforms are typically built on blockchain networks like Ethereum and use smart contracts to automate financial services. Unlike traditional finance, which is centralized and regulated by authorities, DeFi is open, permissionless, and operates without intermediaries, offering greater transparency, lower costs, and more accessibility. However, DeFi comes with its own risks, including smart contract bugs, liquidity issues, and regulatory uncertainties.
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