What it means
DeFi protocols replicate traditional financial functions - lending, trading, derivatives - on smart-contract platforms (mostly Ethereum). Users interact directly with code rather than intermediaries.
Why it matters
DeFi pioneered transparent, composable financial primitives. Even if most current users are crypto-native speculators, the underlying technology is reshaping how financial services can be built.
How to use it
Track total value locked (TVL) by protocol - Aave, Uniswap, Lido. Monitor for exploits and de-pegs. The space rewards skepticism: most yields are unsustainable.
Take it further
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
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