What Is DeFi? Decentralized Finance in Plain English

Decentralized finance, or DeFi, refers to financial services — lending, borrowing, trading, earning yield — built on public blockchains using smart contracts instead of banks or brokers.

Smart contracts do the work

A smart contract is self-executing code on a blockchain. In DeFi, contracts hold funds and enforce rules automatically, so users interact with software rather than a company. This enables new services but also concentrates risk in code.

The risks are real

Smart contracts can contain bugs, protocols can be exploited, and “high yield” often means high risk. There is usually no customer support and no refunds. DeFi is powerful and experimental at once.

Learn before you use

Understand what a protocol does, who audited it, and what could go wrong before committing funds. Our glossary defines the key terms.

Educational content, not financial advice. Crypto is volatile and you can lose money. Do your own research. Crypto Ruble Coins is a news and education publication — not an exchange, conversion, or off-ramp service.