# DeFi

> Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.

Canonical URL: https://fudfomo.co/glossary/defi
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

DeFi is short for decentralised finance. It refers to apps built on blockchains like Ethereum that let you lend, borrow, trade, and earn yield without going through a bank or broker.

The rules of each DeFi app are written into smart contracts. That makes them open and predictable, but also means there is no customer support team if something goes wrong. DeFi is one of the more advanced corners of crypto.

## Regulatory context

Most DeFi protocols are not authorised financial services. Treat them as experimental and check the regulatory status in your country before using them.

## Related terms

- [Smart Contract](https://fudfomo.co/glossary/smart-contract): A program that runs on a blockchain and does what it says, automatically.
- [DEX](https://fudfomo.co/glossary/dex): A decentralised exchange. Trade crypto directly from your wallet, without an account.
- [Liquidity Pool](https://fudfomo.co/glossary/liquidity-pool): A shared pot of two tokens that lets people trade between them on a decentralised exchange.
- [Yield Farming](https://fudfomo.co/glossary/yield-farming): Moving crypto between DeFi apps to earn the highest rewards. Higher yields usually mean higher risk.

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