Introduction
Decentralized Finance, or DeFi, is a new financial system built on blockchain technology—primarily Ethereum—that replaces traditional banks with smart contracts. These automated programs allow users to lend, borrow, trade, and earn interest directly with one another, without relying on intermediaries.
DeFi is open to anyone with an internet connection, operates 24/7, and is governed by transparent code rather than centralized institutions. By removing middlemen, DeFi aims to make financial services more accessible, efficient, and interoperable across different platforms.
In this module, you’ll explore how DeFi protocols work, focusing on the core pillars of lending, borrowing, and trading.