The recreation of traditional financial services like borrowing and lending in a permissionless manner on decentralised blockchains. Only code and logic decide what happens e.g. how much you can borrow based on your collateral or when a loan is liquidated. Aave and Maker DAO are the two of the earliest and most successful DeFi protocols.
Degen 2: “Which bank did you use?”
Degen 1: “None! It’s a DeFi loan from Aave!”« Dictionary Menu