Which coin is DeFi? - Coin Furor

The decentralized finance (DeFi) space is vast, but some leading coins, judged by market cap and utility, are Uniswap (UNI), Aave (AAVE), Curve (CRV), Maker (MKR), and Synthetix (SNX). These represent different facets of DeFi, from decentralized exchanges (DEXs) like Uniswap and Curve, to lending and borrowing protocols like Aave, and synthetic asset platforms like Synthetix. Maker, meanwhile, underpins the DAI stablecoin, a cornerstone of DeFi’s stability.

A DeFi token’s function goes beyond simple speculation. It’s a digital asset with intrinsic value and utility *within* the DeFi ecosystem. This utility can vary wildly. Some tokens grant governance rights, allowing holders to vote on protocol upgrades and future development. Others provide access to specific platform features, like reduced transaction fees or exclusive staking rewards. Still others function as collateral for loans, representing a form of digital creditworthiness. The value of a DeFi token is often directly tied to the success and usage of its underlying protocol, making it crucial to understand the project’s fundamentals before investing.

It’s important to note that the DeFi landscape is constantly evolving, with new projects and tokens emerging regularly. The market capitalization and perceived utility of these top coins can fluctuate dramatically, reflecting both technological advancements and broader market sentiment. Thorough due diligence is paramount before engaging with any DeFi project or token.

Is it safe to leave money in a DeFi wallet?

Security in the decentralized finance (DeFi) space is paramount, and leaving your DeFi wallet connected poses significant risks. While the convenience of staying logged in is tempting, the potential for loss far outweighs this minor benefit.

Why disconnecting is crucial:

Reduced attack surface: A connected wallet is a persistent target. Malicious actors can exploit vulnerabilities in websites or browser extensions to gain access even after you’ve navigated away from the DeFi platform.
Protection against phishing and scams: Phishing attempts often target connected wallets. By disconnecting, you significantly reduce the likelihood of falling victim to these sophisticated attacks.
Mitigation of exploits: Smart contract vulnerabilities can be exploited to drain funds from connected wallets. Disconnecting limits the window of opportunity for such exploits.
Improved privacy: Keeping your wallet disconnected protects your transaction history and balances from prying eyes. While blockchain transactions are public, unnecessary exposure is best avoided.

Best practices for DeFi wallet security:

Use a hardware wallet: Hardware wallets offer the highest level of security by storing your private keys offline.
Enable two-factor authentication (2FA): Adding an extra layer of security makes it significantly harder for unauthorized users to access your account.
Regularly review your transaction history: Check for any unauthorized activity and report suspicious transactions immediately.
Keep your software updated: Ensure your wallet software and browser extensions are up-to-date to patch known vulnerabilities.
Use strong, unique passwords: Avoid using the same password across multiple accounts. Consider using a password manager to generate and store secure passwords.
Only interact with reputable DeFi platforms: Thoroughly research and vet any DeFi platform before entrusting your funds.

In short: The simple act of disconnecting your DeFi wallet after each session is a critical step in mitigating the risks inherent in this evolving financial landscape. Prioritize security; it’s your best defense against financial loss.

Is DeFi safe?

DeFi’s inherent lack of centralized oversight introduces significant risks. While promising decentralization and transparency, the decentralized nature also means fewer regulatory safeguards and less protection for users compared to traditional finance. Smart contract vulnerabilities are a major concern; audits, while helpful, aren’t foolproof, and exploits can drain funds rapidly. Rug pulls, where developers abscond with investor funds, are sadly common. Impermanent loss, a risk inherent in liquidity provision, can significantly erode returns if market conditions shift unfavorably. Furthermore, the nascent regulatory landscape poses ongoing uncertainty. Thorough due diligence is paramount; examine the team’s background, audit reports (multiple, independent audits are preferable), codebase (look for publicly available repositories), tokenomics (understand token distribution and vesting schedules), and community engagement before investing. Consider diversifying your investments across multiple platforms and protocols to mitigate risk. Remember, no DeFi project is entirely risk-free; a comprehensive understanding of these risks is crucial before participation.

Analyzing on-chain data, such as transaction volumes, TVL (Total Value Locked), and smart contract interactions, can offer valuable insights into a project’s health and activity. However, even seemingly robust projects can collapse unexpectedly. The rapidly evolving nature of the DeFi space necessitates continuous learning and adaptation to stay ahead of emerging risks and opportunities.

Always prioritize security best practices, including using reputable wallets and exchanges, enabling two-factor authentication (2FA), and regularly reviewing your holdings. Understand the risks involved in each DeFi protocol before interacting with it, and only invest what you can afford to lose. Remember, the potential for high returns in DeFi is often accompanied by correspondingly high risks.

Can I withdraw money from DeFi?

Withdrawing money from DeFi depends on the specific platform you’re using, but the basic steps are usually similar. Think of it like withdrawing cash from a regular bank account, but instead of a bank, it’s a decentralized application (dApp).

Step-by-Step Guide (Generally):

Access your DeFi wallet: This is crucial. Your wallet holds your cryptocurrency. Make sure you have the correct seed phrase or private key for security. Losing this means losing your funds.
Select “Withdraw”: Most platforms have a clear “Withdraw,” “Send,” or similar option. Look for it in the menu.
Enter the amount: Specify how much cryptocurrency you want to withdraw. Be careful; double-check the amount before confirming.
Confirm the transaction: This usually involves confirming the transaction details and possibly paying a network fee (gas fee for Ethereum-based platforms). Network fees can vary widely.

Important Considerations for Beginners:

Gas Fees: Transactions on the blockchain require a fee (gas) to process. This fee can be significant, especially during periods of high network activity. Check the estimated gas fee before confirming.
Network Speed: How quickly your withdrawal processes depends on the blockchain network’s speed. Some blockchains are faster than others.
Security: Always double and triple-check the address you’re sending your funds to. Sending to the wrong address is irreversible.
Exchange Required (Often): You’ll likely need to convert your cryptocurrency (like ETH or other tokens) to fiat currency (like USD or EUR) via a cryptocurrency exchange before you can access it in your bank account. This involves another set of steps.
Customer Support: If you’re struggling, contact the DeFi platform’s support. The number +1-818-208-1101 may be helpful, but remember to always verify the legitimacy of any support contact.

Is DeFi a good investment?

DeFi’s potential is huge, but it’s definitely not a get-rich-quick scheme. While I’ve seen impressive returns – like my current 100% APY staking on Gamifi (though this is highly project-specific and carries significant risk!), consistent profitability isn’t guaranteed. It’s more like a high-stakes game requiring research and understanding.

Key things to consider:

Smart Contract Audits: Always check for third-party audits of the smart contracts powering the DeFi protocol. Bugs can be exploited, leading to massive losses.
Team Transparency: Look into the team behind the project. Are they experienced? Are they transparent about their operations? Anonymity is a major red flag.
Tokenomics: Understand how the project’s token works. What’s its utility? Is there a clear plan for token distribution and burning to prevent inflation?
Risk Tolerance: High APYs often come with higher risks. Don’t invest more than you can afford to lose. Diversification across several reputable projects can help mitigate risk.

Beyond Staking:

Yield Farming: This involves lending and borrowing crypto assets to earn interest, often with higher APYs than staking, but with increased complexity and risk.
Liquidity Providing (LP): Providing liquidity to decentralized exchanges (DEXs) earns trading fees, but you’re exposed to impermanent loss.
Decentralized Lending: Platforms like Aave and Compound allow you to lend out your crypto and earn interest.

Disclaimer: This is not financial advice. Do your own thorough research before investing in any DeFi project. High APYs often indicate high risk.

How to earn on DeFi?

DeFi yield farming offers returns by lending or providing liquidity to decentralized protocols. Strategies include lending assets on platforms like Aave and Compound, earning interest on deposits. Alternatively, liquidity provision on decentralized exchanges (DEXs) like Uniswap and Curve yields trading fees. However, impermanent loss is a risk in liquidity provision; if the price ratio of the provided assets changes significantly, your return could be lower than simply holding the assets. Consider the risks of smart contract vulnerabilities and platform risks; audits and reputable platforms mitigate this, but no guarantee exists. Maximum return strategies often involve significant risks. Diversification across multiple protocols and strategies is crucial. Advanced strategies include leveraged yield farming, using borrowed funds to amplify returns, but this carries substantially higher risk due to liquidation potential. Always carefully review the terms and conditions of each platform and understand the underlying mechanisms before investing.

Gas fees significantly impact profitability; network congestion increases fees, lowering net returns. Analyze the APR (Annual Percentage Rate) and APY (Annual Percentage Yield) carefully; APY accounts for compounding, providing a more accurate reflection of yearly returns. Tax implications vary by jurisdiction and should be considered. Understanding blockchain security best practices, like using hardware wallets and only interacting with verified contracts, is essential to minimize the risk of theft or loss of funds. Consider the volatility of crypto assets; returns can fluctuate dramatically, potentially leading to significant losses.

Thorough due diligence, including researching the team behind the protocol, examining smart contract audits, and assessing the platform’s overall reputation, is paramount. Regularly monitor your positions and adjust your strategy as needed to optimize returns and manage risk. The DeFi landscape is constantly evolving, so continuous learning is vital to stay ahead of the curve and make informed decisions.

What is DeFi and how it works?

DeFi, or decentralized finance, is essentially a revolution in how we handle money. It uses blockchain to create a peer-to-peer financial system, cutting out the banks and brokers. This “trustless” system means transactions are verified by the blockchain itself, not a central authority, leading to increased transparency and potentially lower fees. Think of it as open-source banking, accessible to anyone with an internet connection.

Beyond simple payments, DeFi offers a wide range of services, including lending and borrowing (using protocols like Aave and Compound), decentralized exchanges (DEXs like Uniswap and SushiSwap) for trading cryptocurrencies without intermediaries, and yield farming, where you lend your crypto to earn interest.

The beauty of DeFi lies in its composability; different DeFi protocols can interact seamlessly, creating innovative financial products. For example, you could borrow funds on Aave to then provide liquidity on Uniswap and earn trading fees. This interoperability unlocks exciting possibilities and drives innovation at a rapid pace.

However, DeFi also presents risks. Smart contract vulnerabilities can lead to hacks and significant losses. Regulatory uncertainty is another major factor. Furthermore, the decentralized nature can mean a lack of consumer protection, so thorough research and understanding are crucial before participating.

Despite the risks, the potential rewards are substantial. DeFi offers opportunities for higher yields, greater transparency, and potentially more financial freedom, making it a fascinating and evolving space within the crypto ecosystem.

What is the dark side of DeFi?

DeFi’s “dark side”? It’s not dark, it’s simply uncharted territory. The inherent risks are significant and often underestimated by newcomers.

Smart contract risks are paramount. A single line of flawed code can wipe out millions. Audits help, but they’re not foolproof. Remember the exploits? They’re a stark reminder that even the most sophisticated contracts can be vulnerable.

Volatility is DeFi’s lifeblood, but also its bane. The wild swings in crypto prices can mean massive gains… or devastating losses in a matter of hours. Diversification helps, but it doesn’t eliminate this inherent risk.

Liquidity is another critical factor. What happens when you need to exit a position quickly, but there’s no buyer? You’re stuck, potentially at a significantly lower price. This is especially true in smaller, less-liquid protocols.

Counterparty risk remains. While DeFi aims to eliminate intermediaries, you still rely on the integrity of the protocols and the users interacting within them. Rug pulls and exit scams are unfortunately still common occurrences.
Security risks extend beyond smart contracts. Phishing scams, private key compromises – these are all classic threats that remain very real in the DeFi space.
Regulatory uncertainty adds another layer of complexity. The legal landscape is constantly evolving, and lack of clarity can leave projects vulnerable and investors exposed.

The “no one is immune to mistakes” mantra is painfully true. Due diligence, risk assessment, and a healthy dose of skepticism are your best defenses. Don’t be fooled by the hype – DeFi is high-risk, high-reward, and requires a sophisticated understanding before investing.

How to invest in DeFi for beginners?

DeFi for beginners? Think of it as the wild west of finance, but with potentially higher rewards and significantly higher risks. Start small. Don’t throw your life savings in.

Step 1: Secure a Wallet. Coinbase Wallet is a decent starting point, but consider alternatives like MetaMask for more advanced options. Your keys, your crypto – never share your seed phrase.

Step 2: Acquire Crypto. Buy some established cryptocurrencies like ETH or stablecoins (USDC, USDT) on a reputable exchange. Avoid pump-and-dump coins; they’re often traps for the unwary.

Step 3: Explore DeFi Apps. This is where things get interesting. Begin with simpler DeFi applications like lending platforms (Aave, Compound) to understand the basics of interest earning. Yield farming sounds lucrative, but it involves significant risk. Understand the mechanics thoroughly before committing. Liquidity providing offers the potential for higher returns but exposes you to impermanent loss – research this crucial concept diligently.

Step 4: Diversify. Don’t put all your eggs in one basket. Spread your investments across different protocols and strategies to mitigate losses. Understand the risks associated with smart contracts; bugs can wipe out your investment.

Step 5: Stay Informed. The DeFi landscape is constantly evolving. Regularly research new protocols and updates, but be wary of hype. Thorough due diligence is paramount.

Important Disclaimer: DeFi involves substantial risk. You could lose your entire investment. This is not financial advice. Conduct your own research.

Is bitcoin an example of DeFi?

No, Bitcoin itself isn’t DeFi, but it’s a crucial underlying asset for some DeFi projects. Think of it like this: DeFi is a broader ecosystem of decentralized financial applications, and Bitcoin is like the gold standard in this system. While Bitcoin’s blockchain isn’t inherently DeFi, layer-2 solutions like Stacks and RSK build on top of Bitcoin, allowing developers to create decentralized applications and smart contracts leveraging Bitcoin’s security and established brand recognition. These Layer 2 protocols provide functionality absent in Bitcoin’s native script, enabling things like decentralized lending, borrowing, and even stablecoins pegged to Bitcoin’s value (WBTC being a prime example). Essentially, Bitcoin’s security and scarcity act as a foundation for more complex DeFi innovations happening *on top* of it, rather than being DeFi itself.

In short: Bitcoin is the secure, decentralized base, while DeFi is the evolving set of applications built *using* that base.

Important note: While Layer 2 scaling solutions are promising, they also introduce new considerations like security audits and potential centralization risks associated with the protocols themselves. Always do your own research (DYOR) before investing in any DeFi project, especially those built on top of Bitcoin’s infrastructure.

Is DeFi trustworthy?

DeFi’s decentralized structure, while offering potential benefits, presents a significant vulnerability to sophisticated scams. The lack of centralized oversight means fraudsters operate with relative impunity. Honeypot scams, designed to lure investors with deceptively high returns before draining their funds, are particularly common. Similarly, rug pulls, where developers abruptly shut down a project and abscond with investors’ money, represent a serious risk. Identifying legitimate DeFi projects requires rigorous due diligence, going beyond superficial marketing materials. Scrutinize the team’s background, audit reports (if available and from reputable firms), smart contract code (look for vulnerabilities), and tokenomics. Furthermore, impermanent loss, a risk inherent in liquidity provision, is often underestimated by novice users and can lead to significant losses. Never invest more than you’re willing to lose, diversify your portfolio across various protocols, and always prioritize security best practices – use reputable wallets and hardware wallets when possible.

Fake accounts and misleading information are rampant on social media and DeFi forums, further complicating risk assessment. Be wary of promises of guaranteed high returns; such claims are almost always indicative of a scam. The decentralized nature, while fostering innovation, also empowers malicious actors. Thorough research and a healthy dose of skepticism are crucial for navigating the DeFi landscape safely.

What is an example of a DeFi?

Imagine a traditional bank, but without a central authority. That’s the core idea behind Decentralized Finance (DeFi). It uses blockchain technology to offer financial services.

Decentralized Lending and Borrowing: You can lend out your cryptocurrencies and earn interest, or borrow crypto using your existing assets as collateral. Platforms like Aave and Compound are examples. Interest rates are determined by supply and demand, making it different from traditional banks.

Stablecoins: These are cryptocurrencies designed to maintain a stable value, usually pegged to a fiat currency like the US dollar (e.g., USDC, USDT). They reduce the volatility associated with other cryptocurrencies.

Decentralized Exchanges (DEXs): These are platforms for trading cryptocurrencies without the need for a centralized intermediary. Uniswap and Pancakeswap are popular examples, offering peer-to-peer trading with automated market makers (AMMs).

Yield Farming: This involves lending or staking your cryptocurrencies across different DeFi platforms to earn high returns. It’s risky, as returns aren’t guaranteed, and requires understanding the underlying protocols.

DeFi Staking: Similar to yield farming, but often involves locking up your cryptocurrencies to support the network’s security and earn rewards. Think of it like earning interest for helping secure a blockchain.

Decentralized Insurance: Provides insurance coverage against risks related to DeFi activities, such as smart contract failures or hacks. This is a relatively new area, still developing.

Cross-Border Payments: DeFi enables faster and cheaper international money transfers compared to traditional banking systems, cutting out intermediaries.

Tokenization of Assets: This involves representing real-world assets (like real estate or art) as digital tokens on a blockchain. This makes them easier to trade and manage.

Is DeFi different from crypto?

Cryptocurrency, in its simplest form, revolves around transferring value and speculative trading. Think Bitcoin – a digital gold facilitating peer-to-peer transactions. DeFi, or Decentralized Finance, takes a radically different approach. It leverages blockchain technology to rebuild traditional financial systems – banking, lending, investing – but without the intermediaries. This translates to greater accessibility, transparency, and potentially lower costs.

The key difference lies in the *purpose*. Crypto is about the asset itself; DeFi is about the *applications* built on top of that asset. You can use cryptocurrencies *within* DeFi protocols, but DeFi is far broader than just holding digital assets.

DeFi offers a compelling alternative to traditional finance. Instead of relying on banks for loans, you can access decentralized lending platforms, often earning higher interest rates on deposited assets. Trading occurs on decentralized exchanges (DEXs), eliminating the need for centralized authorities and potentially mitigating risks associated with custodial services. Beyond lending and trading, DeFi is expanding rapidly into other areas like insurance, derivatives, and stablecoins – creating a whole new financial ecosystem accessible to anyone with an internet connection.

However, DeFi isn’t without its risks. Smart contract vulnerabilities, rug pulls, and the volatile nature of cryptocurrencies inherent in the system can lead to significant losses. Understanding the risks and conducting thorough due diligence before interacting with any DeFi protocol is paramount.

In short: Crypto is the digital asset; DeFi is the decentralized financial system built upon it, offering innovative alternatives to traditional financial services with both significant potential and inherent risks.

Can you make a living with DeFi?

Staking: Locking up your cryptocurrency to secure a blockchain network. Returns vary significantly depending on the network and the token being staked. Consider factors like inflation rates and the network’s overall health when choosing a staking opportunity. Some protocols offer higher APYs (Annual Percentage Yields) but carry proportionally higher risk.
Yield Farming: Lending your cryptocurrency to decentralized lending platforms to earn interest. This often involves providing liquidity to decentralized exchanges (DEXs), earning trading fees in addition to interest. Yield farming can be highly lucrative, but it’s also extremely volatile and susceptible to impermanent loss – the loss incurred when the relative price of assets in a liquidity pool changes.
Lending: Similar to traditional finance, you can lend your crypto assets to borrowers on DeFi platforms and earn interest. Risks include the possibility of borrowers defaulting and smart contract vulnerabilities impacting your funds.

The Risks of DeFi: While the potential for high returns is enticing, DeFi carries substantial risks:

Market Volatility: Cryptocurrency prices fluctuate dramatically. A sudden market downturn can drastically reduce your earnings or even lead to significant losses.
Smart Contract Vulnerabilities: DeFi protocols rely on smart contracts – self-executing contracts written in code. Bugs or exploits in these contracts can lead to hacks and the loss of user funds. Thorough due diligence is paramount.
Regulatory Uncertainty: The regulatory landscape for DeFi is constantly evolving. Changes in regulations can impact the legality and accessibility of certain DeFi platforms and activities.
Rug Pulls and Exit Scams: Be wary of projects with questionable development teams or unclear tokenomics. These scams can drain user funds quickly and unexpectedly.

In short: While a living *is* potentially possible through DeFi, it requires significant research, risk management, and a deep understanding of the technology and market. It’s not a get-rich-quick scheme; rather, it demands diligent effort and a tolerance for high risk.

Which crypto has DeFi?

The question of which cryptocurrencies offer decentralized finance (DeFi) is broad, as many projects incorporate DeFi elements. However, some stand out due to their market capitalization and the integral role DeFi plays in their functionality. Let’s examine a few key players.

Uniswap (UNI): This decentralized exchange (DEX) allows for the swapping of tokens without intermediaries. Its automated market maker (AMM) model is a cornerstone of DeFi, offering liquidity and enabling token trading in a permissionless manner. UNI is the governance token, giving holders voting rights on protocol upgrades and future development.

Aave (AAVE): Aave is a lending and borrowing platform where users can deposit and borrow various crypto assets. It utilizes flash loans, a unique feature allowing for complex transactions within a single block, and offers various interest-bearing options. AAVE tokens grant holders governance rights within the Aave ecosystem.

Curve (CRV): Curve is a DEX specializing in stablecoin trading. Its focus on low slippage and efficient swapping of similar assets makes it popular amongst users seeking minimal price impact. CRV is the governance token, influencing the direction of the platform.

Maker (MKR): MakerDAO is a decentralized stablecoin system. It issues DAI, a stablecoin pegged to the US dollar, through collateralized debt positions (CDPs). MKR is the governance token used to manage the system’s stability and risk parameters. It acts as a crucial component in maintaining DAI’s peg.

Synthetix (SNX): Synthetix allows users to trade synthetic assets, mirroring the price of real-world assets like stocks or commodities, on the blockchain. SNX is the collateral used to mint synthetic assets, playing a crucial role in maintaining the system’s stability and functionality. SNX holders also have governance rights.

It’s important to note that the DeFi landscape is constantly evolving, and new projects are regularly emerging. This list represents a snapshot of some of the more established and influential projects within the DeFi ecosystem. Always conduct thorough research before investing in any cryptocurrency.

How do I get my money from DeFi wallet?

Withdrawing funds from a DeFi wallet requires connecting it to a decentralized exchange (DEX) or a platform compatible with your cryptocurrency’s blockchain. This process involves several key steps:

Choose your withdrawal method: Consider the fees and speed of different DEXs. Some popular options include Uniswap, PancakeSwap, SushiSwap, and others, depending on the blockchain your asset is on (Ethereum, Binance Smart Chain, Solana, etc.). Each DEX has its own interface, but the basic principles remain similar.
Select your cryptocurrency: Specify the exact cryptocurrency you wish to withdraw. Ensure you’re selecting the correct token; mistakes can lead to irreversible loss of funds.
Enter your receiving wallet address: This is the address of the external wallet (e.g., a centralized exchange wallet or another DeFi wallet) where you want to receive your funds. Double and triple-check this address for accuracy before proceeding; incorrect addresses will result in lost funds.
Specify the amount: Enter the precise amount you wish to withdraw. Account for any network fees (gas fees on Ethereum, for instance) that will be deducted from your total balance.
Review and confirm: Carefully review all details—the cryptocurrency, amount, and receiving address—before confirming the transaction. This is your last chance to catch any errors.
Approve the transaction: You’ll need to authorize the transaction using your DeFi wallet’s private keys or by signing the transaction with your wallet’s interface. This step often involves paying a transaction fee (gas).

Important Considerations:

Network Fees (Gas Fees): Be aware that network congestion can significantly impact transaction fees. Consider timing your withdrawal to avoid peak times.
Security: Only use reputable DEXs and ensure your DeFi wallet is secure. Avoid phishing scams and suspicious websites.
Liquidity: Check the liquidity of your chosen cryptocurrency on the DEX before initiating the withdrawal. Insufficient liquidity could hinder your transaction.
Slippage: Be prepared for potential slippage, where the actual exchange rate differs slightly from the expected rate. This is more common during periods of high volatility.

Remember that the specific steps might vary slightly depending on the DEX and DeFi wallet you are using. Always refer to the official documentation of those platforms for detailed instructions.

Is Ethereum a DeFi?

Ethereum isn’t just DeFi, but it’s the foundation for most DeFi applications. Think of it like this: Ethereum is the internet, and DeFi apps are like websites built on that internet.

Ethereum allows developers to create and run decentralized applications (dApps). These dApps don’t rely on a central authority like a bank or government. DeFi dApps are a specific type of dApp focused on finance.

What makes DeFi different?

No intermediaries: You interact directly with smart contracts (self-executing code) instead of going through banks or brokers.
Transparency: All transactions are recorded on a public blockchain, making them auditable and verifiable.
Accessibility: Anyone with an internet connection can access DeFi services, regardless of their location or financial background (though certain restrictions may still apply).

Examples of DeFi applications built on Ethereum:

Decentralized Exchanges (DEXs): Trade cryptocurrencies without relying on centralized exchanges like Coinbase or Binance.
Lending and Borrowing Platforms: Lend or borrow cryptocurrencies, earning interest or paying interest, without needing a bank.
Stablecoins: Cryptocurrencies pegged to the value of a fiat currency (like the US dollar), designed to minimize volatility.

So, while Ethereum provides the platform, DeFi represents the specific financial applications built on top of that platform. Ethereum is the engine, DeFi is one of the many things you can build with that engine.