IntermediateStart here
What is DeFi?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 6 min
In short
DeFi is finance — swapping, lending, yield — delivered by smart contracts. No account is needed, but there is also nobody to call when something goes wrong.
Key points
- Swap and lend without an intermediary
- Contract vulnerabilities are a real risk
- Every transaction is public
Definition
Financial services executed by smart contracts without an intermediary.
Typical examples are swapping on a DEX, lending through a protocol, and earning staking rewards. No bank account or KYC — connect a wallet and go.
In exchange, mistaken transfers, malicious contracts and exploits are all yours to avoid. Start with an amount you can afford to lose while you learn how it behaves.
Watch out for
- · The higher the advertised yield, the harder you should look for the risk
- · Review and revoke token approvals regularly