Decentralized finance (DeFi) is an emerging market that allows users to access financial services markets, earn passive income through staking, lending, or yield farming, and manage digital assets. DeFi carries unique risks, including smart contract bugs, impermanent loss, and regulatory uncertainty.
The decentralized finance DeFi ecosystem offers several advantages over traditional finance, making it attractive to both beginners and experienced users. These benefits include permissionless access, transparency, control, yield potential, global accessibility, lower barriers to entry, and composability.