Decentralized finance (DeFi) emerged as a concept in the cryptocurrency space in 2017, but it gained significant traction in 2020. DeFi refers to the use of blockchain technology and smart contracts to create financial services that operate without the need for traditional intermediaries, such as banks or brokerages.

The DeFi ecosystem allows users to lend, borrow, trade, and invest in various digital assets directly from their digital wallets. This decentralized approach offers greater accessibility, transparency, and control over one's finances compared to traditional financial systems.

Some of the key DeFi platforms and protocols that have gained popularity include decentralized exchanges (DEXs) like Uniswap and SushiSwap, lending protocols like Compound and Aave, and yield farming platforms like Yearn Finance.

DeFi has seen explosive growth in recent years, with total value locked in DeFi protocols reaching billions of dollars. However, the rapid expansion of the DeFi space has also raised concerns about security, regulatory compliance, and the risks associated with smart contract vulnerabilities.

Despite these challenges, DeFi continues to innovate and evolve, with new projects and protocols constantly being developed to expand the capabilities of decentralized finance. The future of DeFi holds great promise for revolutionizing the way financial services are accessed and utilized by individuals around the world.