DeFis
DeFis is a plural form often used to refer to decentralized finance protocols and applications built on blockchain platforms. The term encompasses a broad set of services that replicate or extend traditional financial functions—such as lending, trading, payments, insurance and derivatives—using smart contracts, tokenized assets and distributed ledgers instead of centralized intermediaries.
Core components of DeFis include smart contract protocols, decentralized exchanges (DEXs), automated market makers (AMMs), lending
DeFis grew notably after 2018 with major expansion on Ethereum and subsequent adoption across other chains
Risks and limitations include smart contract vulnerabilities, hacks and exploits, liquidity and market risks, oracle manipulation,
Future directions for DeFis emphasize cross‑chain interoperability, improved security audits, clearer regulatory frameworks, user protection mechanisms,