Markets · Beginner lesson · about 2 minutes
DeFi
Financial software that runs through on-chain programs and protocols.
The short answer
DeFi can provide exchanges, lending, and other services through smart contracts instead of a traditional operator. The code, front end, or governance may each introduce different dependencies.
In plain English
DeFi can provide exchanges, lending, and other services through smart contracts instead of a traditional operator. The code, front end, or governance may each introduce different dependencies.
The details differ by network and service, so use the linked sources and the project’s own documentation when a decision depends on current behavior.
What can go wrong
Read this before you act.
Bugs, oracle failures, admin keys, liquidity loss, bridges, and malicious approvals can move or lock assets.
Check your understanding
A few questions. Not a test.
Pick an answer to see why it's right or wrong. There's no score to unlock.
Sources and corrections
This lesson is a starting point. The two sites below are good general places to learn more. Please tell us if something needs fixing.