DeFi (Decentralized Finance) is a movement which permits the use of financial services like lending, borrowing, and trading without reliance on centralized bodies. Dapps (Decentralized Applications) provide these financial services, majority of which are set up on the Ethereum network.
DeFi is neither a company nor single product, but an array of products and services acting as a substitute for institutions spread across banking, bonds, money markets and insurance. With DeFi Dapps, users can combine services to bring about many possibilities.
For the understanding of beginners, by eliminating the need for middlemen, these DeFi Dapps seek to transform conventional financial services. It is important to note, however, that the present state of DeFi is still emerging and experimental with a lot of projects still going through rapid improvement every day.
Nonetheless, understanding the fundamentals of DeFi is very useful and with the right expertise, one can make good use of the DeFi Dapp features.