DeFi is short for "Decentralized Finance". Compared with traditional centralized finance, it refers to applications in various financial fields established in an decentralized network. Users no longer need to participate in the financial market through centralized institutions, but can use the decentralized network to acquire, trade, and lend assets. Simply speaking, it is to establish a new financial system that is open to everyone without the need for intermediaries such as banks.
The goal of DeFi is to establish a multi-level financial system to recreate and improve the existing financial system based on blockchain technology and cryptocurrency.
Currently, almost all DeFi projects are running on the Ethereum blockchain, and smart contracts are the main constructed blocks of DeFi. The most common types of DeFi Dapps today include Compound, MakerDAO, Synthetix, and decentralized exchanges (Uniswap, PancakeSwap, etc.)