Introduction to DeFi

DeFi, short for decentralized finance, replaces bank-controlled ledgers and office workflows with smart contracts that run on a public blockchain.

Instead of opening separate accounts for trading, borrowing, or holding digital dollars, users often access all three from the same wallet.

Decentralized exchanges handle token swaps, lending protocols turn idle assets into collateral and credit, and stablecoins make prices easier to reason about in familiar terms.

The base chain anchors all of it. If the chain is secure and widely used, DeFi inherits those benefits. If the chain gets congested, users feel that pressure through slower confirmation and higher fees.