DeFi Ecosystems

Definition ∞ DeFi Ecosystems comprise a collection of decentralized applications, protocols, and platforms operating on blockchain networks, offering financial services without traditional intermediaries. These systems enable lending, borrowing, trading, and insurance using smart contracts. DeFi ecosystems aim to provide open, transparent, and permissionless financial access.
Context ∞ DeFi ecosystems are a dynamic area of innovation within digital assets, frequently featured in crypto news for their rapid growth and novel financial products. Discussions often concern security vulnerabilities, regulatory oversight, and scalability challenges. The ongoing evolution of these systems is closely watched for their potential to reshape global finance.