# DeFi

/ˈdiːfaɪ/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/defi
Updated: 2026-08-15

## Definition

a system of financial services — lending, borrowing, and trading — built on blockchains that run through code instead of banks or other traditional middlemen.

For teachers: decentralized finance: an umbrella term for peer-to-peer financial services delivered through smart contracts on a blockchain, without centralized intermediaries such as banks or brokerages.

## Examples

- He earns interest on his savings through DeFi.
- Instead of using a bank, she borrowed stablecoins through a DeFi lending protocol.
- Because DeFi platforms replace intermediaries with open-source smart contracts, a single coding flaw can drain millions from a liquidity pool in seconds.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.