web3/concepts/defi.md

Decentralized Finance (DeFi)

Defi is a broad category of smart-contracts which loosely correspond to digital contracts running on a blockchain which allow users to create collateralized loans out of stablecoin and which have side payouts in so-called "governance tokens".

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 and to fund margin trading activities to speculaate on crypto assets.

See also yield farming, AMM, DEX.

References

• [@allen_defi_2022]
• [@carter_defi_2021]
• [@aramonte_defi_2021]
• [@saengchote_defi_2021]
• [@barbereau_defi_2022]