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Decentralized Finance (DeFi)
Practical Law Glossary Item w-026-5468 (Approx. 3 pages)
Glossary
Decentralized Finance (DeFi)
The lending and borrowing of cryptocurrency or virtual currency (VC) on a "decentralized" platform, with no primary physical location. This activity may take a number of forms, including:
- Lending of cryptocurrency and payment of interest and/or repayment of principal in fiat currency.
- Lending of cryptocurrency and payment of interest and/or repayment of principal in another cryptocurrency.
For details on DeFi, see Practice Note, Decentralized Finance (DeFi): Overview.