Decentralized finance (better known as DeFi) is a set of peer-to-peer financial services running on decentralized blockchains, most commonly Ethereum. It includes financial services such as lending and borrowing, decentralized exchanges, interest generation (yield farming), synthetic assets, insurances, etc… DeFi offers very high interest rates, often with double or triple digit rates. This high reward is associated with higher risks such as vulnerability to hacking and bad coding.
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