DeFi refers to decentralized finance, which covers the overarching concept of eliminating financial intermediaries and provides value in the provision of more extensive use cases for blockchain technology.
DeFi is the short form of “decentralized finance,” an overarching term for the variety of products and simplified services that disrupt the financial industry by removing all intermediaries. The blockchain inspires the concept to ensure that all transactions are held in a copy of the distributed ledger, guaranteeing that there is no single source in control of the information.
Perhaps the key reason for the rapid growth in the DeFi concept is its use for payment transfers to extend to more complex scenarios. Some of the most known use cases include stablecoins, open lending platforms, yield farming, staking and decentralized exchanges. For users, these applications allow for higher interest rates than are offered in traditional banks and fewer barriers requirements for taking out a loan