noun

DeFi

DEE-fye

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DeFi (noun) means Financial services such as lending, borrowing and currency exchange, run by software on a blockchain rather than by a bank or broker, so that users deal directly with the programs and with each other. Example: “He swapped one token for another using DeFi rather than an exchange.”

noun

Financial services such as lending, borrowing and currency exchange, run by software on a blockchain rather than by a bank or broker, so that users deal directly with the programs and with each other.

"He swapped one token for another using DeFi rather than an exchange."

"The report looked at how much money is locked up in DeFi."

adjective

Belonging to or operating within that world of blockchain-based financial software.

"A DeFi protocol paused withdrawals after a bug was found."

How to use DeFi

Learner’s notes

In plain EnglishBanking-style services run by computer programs instead of by a bank.

When to use it

Usually written with a capital D and a capital F. Common in industry writing and financial journalism; still unfamiliar to general readers.

Memory tip

The opposite term you will meet most often is CeFi, centralised finance, meaning a crypto company that holds your funds for you.

Trace the full origin ↓

Easily confused with

CeFi TradFi → fintech smart contract →

Common pairings

DeFi protocol DeFi platform DeFi lending total value locked in DeFi DeFi hack

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C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

Test yourself on “DeFi” A quick quiz — meaning, synonyms & usage →

Fill the gap

Can you complete this real example?

He swapped one token for another using _____ rather than an exchange.

Etymology

A blend of decentralised finance, shortening de- from decentralised and fi from finance.

Origin: English

Synonyms

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decentralised finance open finance on-chain finance decentralised on-chain permissionless

Antonyms

traditional finance TradFi centralised finance

Related words

decentralized tradfi blockchain web3

Frequently asked questions

What is the difference between DeFi and a normal bank?

A bank holds your money, decides who may borrow and can reverse a payment. In DeFi, the rules are written into programs on a blockchain that anyone can inspect and use, and transactions are generally not reversible. There is usually no institution obliged to compensate users if something goes wrong.

What is the difference between DeFi and CeFi?

CeFi, centralised finance, means crypto companies such as exchanges that take custody of customer funds and run their own internal records. DeFi means the same kinds of service provided by programs running on a public blockchain, with users keeping control of their own wallets.

Is DeFi regulated?

Treatment varies widely by country, and rules are still developing in many places. Some jurisdictions apply existing financial law to parts of the sector, while other activities fall outside the frameworks that cover banks and brokers.

What is the meaning of DeFi?

"DeFi" (noun) means financial services such as lending, borrowing and currency exchange, run by software on a blockchain rather than by a bank or broker, so that users deal directly with the programs and with each other.

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decentralized tradfi blockchain web3