Internet
defi
What does defi mean?
Short for 'decentralised finance', an ecosystem of lending, trading, and yield services built on blockchains without traditional intermediaries like banks or brokers.
"I moved my stablecoins into DeFi to earn yield instead of leaving them idle."
Origin
Coined by the Ethereum community; exploded in popularity during 'DeFi Summer' 2020.
Frequently asked questions
What does DeFi mean?
DeFi stands for decentralised finance — lending, trading and yield services built on blockchains that run without banks or brokers.
How is DeFi different from a bank?
DeFi services run on smart contracts and let you keep custody of your own funds, whereas a bank is a centralised intermediary that holds your money.
When did DeFi become popular?
It exploded during 'DeFi Summer' in 2020, when liquidity-mining rewards drew huge amounts of capital into the sector.
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