Introduction to Decentralized Finance (DeFi)

Use cases, products, webinars, and more to help you participate in the most exciting financial shift of our time.

Decentralized finance — often called DeFi or open finance — refers to the economic paradigm shift enabled by decentralized technologies, particularly blockchain networks. From peer-to-peer payment systems to automated loans to USD-pegged stablecoins, DeFi has emerged as one of the most active sectors in the blockchain space, with a range of use cases for developers, individuals, and institutions.

The Advantages of DeFi

Decentralized finance leverages three key principles of the Ethereum blockchain to unlock liquidity and growth opportunities, increase financial security and transparency, and support an integrated and standardized economic system.

Programmability. Highly programmable smart contracts automate execution and enable the creation of new financial instruments and digital assets.

Highly programmable smart contracts automate execution and enable the creation of new financial instruments and digital assets. Immutability. Tamper-proof data coordination across a blockchain’s decentralized architecture increases security and auditability.

Tamper-proof data coordination across a blockchain’s decentralized architecture increases security and auditability. Interoperability. Ethereum’s composable software stack ensures that DeFi protocols and applications are built to integrate and complement one another.

Visit our DeFi hub to learn more about DeFi use cases, explore products, and read our latest ecosystem report.