7. What is DeFi (Decentralized Finance)? 🏦➡️🔗
DeFi, short for Decentralized Finance, is a new form of finance built on blockchain technology — especially on platforms like Ethereum, BNB Chain, Solana, etc. It allows people to access financial services like borrowing, lending, trading, saving, and investing — without banks or intermediaries.
🏦 Traditional Finance (Centralized):
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You go to a bank or use apps like Paytm or Google Pay.
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You need permission, KYC, and banks charge fees.
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A central authority controls everything.
🔗 Decentralized Finance (DeFi):
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You use smart contracts instead of banks.
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You stay in control of your money — no middlemen.
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You just need a crypto wallet (like MetaMask) to start.
✅ What You Can Do with DeFi:
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Lend crypto and earn interest.
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Borrow crypto by giving collateral.
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Trade tokens on decentralized exchanges (DEXs) like Uniswap or PancakeSwap.
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Stake tokens to earn passive income.
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Participate in liquidity pools and farming.
💡 Example:
If you want to earn interest on your crypto, you can lend USDT on a DeFi platform and earn 8–12% annually — without needing a bank.
⚠️ Caution:
DeFi is powerful but risky. Scams, hacks, or smart contract bugs can lead to loss. Always research before investing.
