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Glossary

DeFi

In short

DeFi ("decentralized finance") means financial services built from smart contracts instead of banks: swap, lend, earn interest — around the clock, no account opening.

The transparency is radical: every contract and transaction is publicly visible. So is the self-responsibility — nobody refunds bugs, hacks or user error.

Is DeFi safer than a bank?

Differently risky: no single bank failure risk, but code, fraud and user-error risk with no deposit insurance.

Related terms

Information, not investment advice. More of this? The newsletter.