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Do you want to learn about the exciting world of decentralized finance (DeFi)? In this article, we will explain the basics of DeFi, the building blocks that make it possible, and the potential benefits and risks that come with DeFi.

Introduction to DeFi

DeFi stands for “decentralized finance,” and it refers to a new financial system built on top of decentralized technologies, such as blockchain. DeFi promotes transparency, accessibility, and financial inclusion by removing intermediaries, such as banks, from financial transactions.

DeFi Building Blocks

Here are the three main building blocks of DeFi: