Unlike traditional financial systems that rely on centralized authorities, DeFi operates in a decentralized manner, allowing users to transact, lend, borrow, trade, and invest directly with one another through smart contracts. This eliminates intermediaries, reduces fees, and enhances transparency.
Some of the use case of DeFi include asset management, data and analytics, DeFi Exchanges (DEX), gaming, stable coins, synthetic assets, tokenization, borrowing and lending, identity management, predictive markets, complying to AML & CFT, and more.