# What is DeFi?

Decentralized Finance (DeFi) is a financial ecosystem built on blockchain networks such as Ethereum and its scaling layers.

Instead of banks or brokers acting as intermediaries, financial services are executed by smart contracts — autonomous programs deployed on-chain.

These smart contracts enable activities such as:

* Lending and borrowing.
* Providing liquidity to decentralized exchanges and earning swap fees. 
* Participating in token incentive programs.

DeFi is open and permissionless. Anyone with a wallet and internet access can participate.

That openness creates opportunity. It also introduces new forms of risk.

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