Decentralized finance refers to using blockchain technology to create decentralized cryptocurrencies and financial applications. The term refers to two different types of applications: 1) decentralized cryptocurrencies, such as Bitcoin, that are used as a medium of exchange 2) decentralized financial applications, such as peer-to-peer lending platforms, that are used to transfer value between individuals. Decentralized finance has the potential to change the way the financial system works completely. Instead of relying on centralized institutions such as banks and governments, finance can be decentralized and decentralized applications can be used to transfer, allocate and manage value between individuals. One of the most popular applications of DeFi is decentralized lending protocols. Lending protocols allow individuals or institution to borrow money from other users on the blockchain without having to go through a traditional lending institution. This has the potential to provide a much cheaper and more convenient way for individuals to obtain financing. DeFi also has the potential to change the way that lenders are able to safely lend their money. Because lending is decentralized, there is no intermediary that is able to take a profit or charge a fee. This has the potential to allow for a much better return for lenders than the current system, where lenders only receive a small return on their deposits.