DeFi, short for Decentralized Finance, represents a collection of decentralised financial solutions and services built on blockchain technology and tools such as smart contracts and DApps (Decentralized Applications). DeFi protocols are distinguished by their adoption of open-source smart contracts, paving the way for the use and customisation of pre-existing code, thereby stimulating innovation and transparency in the ecosystem.

The essence of DeFi lies in its ability to democratise access to financial services. Eliminating traditional intermediaries, such as banks and financial institutions, allows users to interact directly with financial markets and other users. This decentralised approach offers greater autonomy, lower transaction costs, and more equitable access to these services.

There is a wide variety of DeFi protocols: applications for decentralised lending, yield farming, decentralised exchanges (DEXs), and markets for insurance or derivatives. These services are built on public blockchains like Ethereum, which provide a secure, transparent, and immutable environment for transactions.

The concept of open-source in DeFi is particularly significant. It allows developers to use and improve existing code, accelerating innovation and the creation of new services and applications.

However, DeFi still faces many challenges, such as complexity of use, scalability issues, and risks related to the security of smart contracts. Despite these obstacles, it continues to grow and evolve, offering an alternative and advanced vision of the future of financial services based on principles of decentralisation, openness, and innovation.

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