Decentralized Finance (DeFi) refers to a financial ecosystem built on blockchain technology that aims to recreate traditional financial systems in a decentralized manner. By utilizing smart contracts on platforms like Ethereum, DeFi allows users to lend, borrow, trade, and earn interest on their assets without the need for intermediaries like banks. This innovative approach enhances accessibility and transparency, enabling anyone with an internet connection to participate in financial activities. DeFi projects often include decentralized exchanges (DEXs), lending platforms, and yield farming opportunities, all of which contribute to a more open and inclusive financial landscape.