DeFi stands for "Decentralized Finance," and it refers to a new type of financial system that operates on a decentralized, peer-to-peer blockchain network.

In traditional finance, financial institutions such as banks and brokerages act as intermediaries between parties to facilitate transactions and manage assets. However, DeFi aims to eliminate intermediaries and create a more transparent and accessible financial system through the use of blockchain technology.

DeFi applications provide a wide range of financial services, such as lending, borrowing, trading, and asset management. Users can access these services using decentralized applications (DApps) that run on blockchain networks such as Ethereum.

DeFi has gained significant attention in recent years due to its potential to disrupt traditional finance and increase financial inclusion by providing services to individuals who are currently underserved or excluded from the traditional financial system.