Cryptensive
NewsBlog
Psychology
The Behavioral InvestorMarket PsychologyCase StudiesExperimentsToolkitPsychology Training
Crypto Projects
Dashboards
MarketEcosystems
Exchanges
Centralized Exchanges (CEX)Decentralized Exchanges (DEX)
Wallets
Cold WalletsHot Wallets
ToolsGlossary
NewsBlogPsychologyThe Behavioral InvestorMarket PsychologyCase StudiesExperimentsToolkitPsychology TrainingCrypto ProjectsDashboardsMarketEcosystemsExchangesCentralized Exchanges (CEX)Decentralized Exchanges (DEX)WalletsCold WalletsHot WalletsToolsGlossary
Home/Glossary/DeFi (decentralized finance)
DeFi

DeFi (decentralized finance)

Also called: DeFi · decentralized finance

In shortFinancial services — trading, lending, borrowing, earning yield — run by smart contracts instead of banks.

In DeFi anyone with a wallet can swap on a DEX, lend or borrow, or provide liquidity, with no account and no opening hours. Total value in DeFi is measured as TVL.

The risks are different from a bank's: smart contract bugs, exploits, oracle failures and no customer support if you make a mistake.

Read more on Cryptensive

  • DeFi projects
  • Aave review
← Decentralized exchange (DEX)All terms A–ZDeFi lending →

Related terms

  • Decentralized exchange (DEX)A trading platform run by smart contracts, where you swap tokens straight from your own wallet.
  • Automated market maker (AMM)A type of DEX that prices trades with a formula based on the tokens in a liquidity pool, instead of an order book.
  • TVL (total value locked)The total value of crypto deposited in a DeFi protocol or blockchain.
  • DeFi lendingLending crypto for interest, or borrowing against your crypto, through smart contracts.
  • Yield farmingMoving crypto between DeFi protocols to earn the highest possible rewards.
  • Smart contractA program stored on a blockchain that runs exactly as written when someone calls it.
Browse the glossary
Cryptensive

Some links on this site are affiliate links. If you open an account through one of them, we may earn a commission at no extra cost to you. In return, we’re committed to providing you with the highest-quality content and service we can. Nothing here is financial advice.

Navigation

NewsBlogPsychologyCrypto ProjectsDashboardsExchangesWalletsToolsGlossary

Legal

Privacy policyTerms & conditionsAffiliate disclosure
© 2026 Cryptensive. All rights reserved.Crypto involves risk. Do your own research.