Introduction to DeFi
Rebuilding finance without banks or intermediaries
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0 / 5 completed🏦 Finance Without Banks
Decentralized Finance (DeFi) replaces banks, brokers, and financial intermediaries with smart contracts on blockchain networks. Instead of trusting Chase or Goldman Sachs to hold your money, you trust code that's transparent, auditable, and permissionless. Launched in 2018 with projects like Compound and Uniswap, DeFi grew from $1B to $180B in Total Value Locked (TVL) by 2021. Today, over $120B flows through DeFi protocols offering lending, trading, staking, and derivatives—all accessible 24/7 to anyone with a crypto wallet.
🚀 The DeFi Revolution
Traditional finance requires permission: banks decide who gets accounts, credit scores determine loan access, and exchanges control when markets open. DeFi is permissionless—no gatekeepers, no credit checks, no business hours. Smart contracts execute automatically when conditions are met. A 19-year-old in Nigeria has the same access as a Wall Street trader. Interest rates are set by algorithms, not bank executives. Transactions settle in seconds, not days. This is finance rebuilt from first principles for the internet age.
Total Value Locked
Assets secured in DeFi protocols (2024)
Always Available
No business hours or holidays
Active Users
Unique addresses using DeFi protocols
Permissionless
No identity verification required
🎯 What DeFi Enables
Peer-to-Peer Lending
Lend crypto and earn 3-20% APY, or borrow against collateral instantly
Decentralized Exchanges
Trade tokens without intermediaries—Uniswap processes $1B+ daily
Synthetic Assets
Trade tokenized stocks, commodities, and currencies on-chain
Flash Loans
Borrow millions without collateral (must repay in same transaction)
💡 Why It Matters
For Individuals
Access financial services without bank accounts, earn higher yields, and maintain custody of assets
For Developers
Build financial apps by composing existing protocols like LEGO blocks—innovation without permission