> For the complete documentation index, see [llms.txt](https://docs.bitdrive.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitdrive.finance/glossary/defi.md). # DeFi Decentralized Finance (DeFi) and Decentralized Exchanges (DEXs) have been one of the fastest growing parts of the crypto sector. DeFi lets anyone do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or a third party. DeFi uses the blockchain technology that cryptocurrencies use. A blockchain is a distributed and secured database or ledger. Distributed applications (dApps) are used to handle transactions and run the blockchain. As with crypto generally, DeFi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), pseudonymous, and open to all. In 2021, [DeFi Pulse](https://www.defipulse.com/) reported that the Total Value Locked (TVL) assets in the DeFi space was $87.72B. The most common sentiment heard around the 'DeFi-verse' is that it tends to be challenging for newcomers as well as crypto veterans. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.bitdrive.finance/glossary/defi.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.