What is Decentralized Finance?
Decentralized Finance (DeFi) encompasses tools and services that enable financial activities on blockchain networks without traditional intermediaries. This category includes protocols and platforms for lending, borrowing, trading, yield farming, stablecoins, decentralized exchanges (DEXs), and asset management. Developers and product teams use these tools to build applications that offer transparent, permissionless, and programmable financial services. Key characteristics of DeFi tools include smart contract automation, composability, and on-chain governance. Subcategories often include lending platforms, DEXs, derivatives, and stablecoin protocols. Developers should explore DeFi tools when building applications that require decentralized financial operations, liquidity provision, or integration with existing DeFi ecosystems.
