How Does DeFi Works?

DeFi users typically interact with it via software called "decentralized apps" (or dapps).

Most of these apps run on the Ethereum blockchain.

There is no application or account to create, unlike a traditional bank.

Here's How People Engages with DeFi: Lending: You can lend your crypto to earn interest and rewards every hour, not just once a month.

Applying for a loan: Get a loan immediately without completing the paperwork. 

This includes exceptionally short-term "flash loan" loans not offered by traditional financial institutions.

Trading: Trade crypto assets peer-to-peer just like you can buy and sell stocks with no brokerage.

Buy derivatives: Place long or short bets against specific assets. These are the crypto equivalent of futures or stock options.