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What is DeFi? Decentralized Finance Explained for Newcomers 1. Understanding DeFi (Decentralized Finance) DeFi (Decentralized Finance) refers to a financial system that operates on blockchain technology without traditional banks or intermediaries. It allows users to borrow, lend, trade, and earn interest on digital assets using smart contracts—self-executing agreements stored on a blockchain. 2. Key Features of DeFi Decentralized: No central authority (like banks or governments) controls DeFi applications. Permissionless: Anyone with an internet connection and a crypto wallet can participate. Transparent: All transactions are recorded on public blockchains, ensuring trust. Interoperable: Many DeFi applications (DApps) can work together, creating an open financial ecosystem. 3. Popular DeFi Applications DeFi platforms provide various financial services, including: Decentralized Exchanges (DEXs): Trade crypto without a middleman (e.g., Uniswap, PancakeSwap). Lend...
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