DeFi (Decentralized Finance) is a blockchain-based financial system aimed at providing traditional financial services like lending, trading, saving, and investing in a decentralized way. Unlike traditional financial systems, DeFi eliminates the need for intermediaries like banks or financial institutions, allowing users to conduct financial transactions directly through the use of smart contracts and blockchain technology.

Key Features of DeFi

1. Decentralization:
   - DeFi platforms are built on blockchains, usually public and permissionless. This means that no single central authority controls the system. Users can interact directly with the platform without needing traditional financial intermediaries.