DeFi Guide

Decentralized Finance (DeFi) refers to a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks. **Key Principles:** • **Decentralization**: No central authority controls the system • **Permissionless**: Anyone can participate without approval • **Transparent**: All transactions are visible on the blockchain • **Composable**: DeFi protocols can be combined like building blocks • **Global**: Accessible to anyone with an internet connection **Traditional Finance vs DeFi:** Traditional Finance: • Banks control your money • Limited operating hours • Geographic restrictions • High fees and slow transfers • Requires intermediaries DeFi: • You control your money • 24/7 availability • Global access • Lower fees and fast transfers • Direct peer-to-peer transactions **Popular DeFi Protocols:** • Uniswap: Decentralized exchange • Aave: Lending and borrowing • Compound: Interest earning • MakerDAO: Stablecoin creation