The DeFi Dictionary: Your Guide to Decentralized Finance

Decentralized finance, or DeFi, is rife with wild growth opportunities and scam potential alike. This primer should help investors get their bearings.

Decentralized finance (DeFi) concept art.
(Image credit: Getty Images)

It's no secret that understanding the traditional finance world is challenging. Unfortunately, making sense of decentralized finance (DeFi) is even harder.

Decentralized finance is a growing collection of financial tools built on top of the blockchain – a digital ledger that lives across a collection of distributed servers. These platforms and protocols allow users to trade cryptocurrency, borrow and lend money, and earn interest, all without a centralized bank or third-party intermediary.

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Disclaimer

We plan on updating this dictionary regularly as the world of DeFi rapidly evolves.

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Randy Ginsburg
Contributing Writer, Kiplinger.com

Randy is a New York-based freelance writer and author covering the world of emerging technology and entrepreneurship. Deeply interested in the way technology will impact his grandkids' lives, Randy has been featured in several publications, including NFT Now, Forbes and Newsweek.