DeFi stands for Decentralized Finance.

It refers to a new type of financial system built on blockchain technology (especially Ethereum) that does not rely on traditional banks or financial institutions. Instead, DeFi uses smart contracts to offer financial services like:

Lending & borrowing (e.g., you can lend your crypto and earn interest)

Trading (using decentralized exchanges like Uniswap)

Saving and earning interest (like staking or yield farming)