DeFi applications enable users to lend, borrow, trade, and store cryptocurrencies, without the need for centralized institutions. This creates a transparent and secure financial ecosystem where individuals can have full control over their assets and financial transactions. DeFi also enables the creation of new financial instruments, such as synthetic assets and prediction markets, allowing for new ways to speculate and manage risk.

The DeFi space has grown rapidly in recent years, with a wide range of applications and use cases. Some of the most popular DeFi applications include decentralized exchanges (DEXs), lending platforms, stablecoins, and yield farming protocols. However, as with any emerging technology, DeFi also faces challenges and risks, such as smart contract vulnerabilities, regulatory uncertainty, and potential market volatility.