Decentralized Finance, or DeFi, is described as a “composable ecosystem of protocols built on Ethereum that enable the creation of financial applications”. In other words, it is a financial system that runs on a decentralized infrastructure.
With DeFi, you can do everything that you can do with traditional financial products, but without the need for a central authority or intermediaries.
DeFi applications allow users to earn, borrow, lend, trade, and much more without the need for a third party and at a faster pace compared to banks.