DeFi stands for decentralized finance, which means financial services like lending, borrowing, and trading that run on blockchain networks instead of through traditional banks or brokers. In DeFi, computer code, not people, controls the rules and executes the transactions.
Instead of depositing money in a bank to earn interest, you could lend your cryptocurrency through a DeFi platform and earn interest directly from borrowers. The smart contract, or computer program, automatically handles payments and keeps track of who owes what.
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