# Decentralized Finance (DeFi)
Defi is a broad category of [smart-contracts](smart-contracts.md) which loosely correspond to digital contracts running on a [blockchain](blockchain.md) which allow users to create collateralized loans out of [stablecoin](stablecoin.md) and which have side payouts in so-called "[governance tokens](governance-token.md)".

DeFi generally refers to a collection of services which offer lending products offered by non-banks and which exist outside the regulatory perimeter as a form [regulatory-arbitrage](regulatory-arbitrage.md) and to fund margin trading activities to [speculaate](speculation.md) on [crypto assets](cryptoasset.md).

See also [yield farming](yield-farming.md), [AMM](amm.md), [DEX](dex.md).

## References
* [@allen_defi_2022]
* [@carter_defi_2021]
* [@aramonte_defi_2021]
* [@saengchote_defi_2021]
* [@barbereau_defi_2022]