DeFi

[dee-fahy]

noun

1. decentralized finance: financial services, functions, or applications that rely on a blockchain and are typically unregulated by any financial institution.

Word History and Origins

Origin of DeFi¹

First recorded in 2015–20

Example Sentences

Jennifer Rosenthal, chief communications officer at the the DeFi Education Fund, a crypto advocacy group, argues that investments such as Harvard’s mean that crypto currencies have become mainstream investments.

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And some A16Z investments have become major players in so-called decentralized finance, known as defi, which supporters hope will replace the traditional banking system.

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When stablecoins are deposited into Coinbase’s lending program, they are routed to Morpho, a DeFi platform where borrowers post cryptocurrency collateral in order to borrow stablecoins.

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On top of market risk, participating stablecoin holders also face cyber and smart contract risks tied to the DeFi protocol itself, as well as the operational risks of Coinbase and the stablecoin issuer.

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DeFi protocols figured this out years ago.

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