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# What is decentralized finance (DeFi)

Decentralized finance—often called DeFi or open finance—refers to the economic paradigm shift enabled by decentralized technologies, particularly blockchain networks. DeFi signals the shift from a historically centralized and closed financial system toward a universally accessible economy that is based on open protocols that are interoperable, programmable, and composable. From streamlined and secure payment networks to automated loans to USD-pegged stablecoins, decentralized finance has emerged as one of the most active sectors in the blockchain space. Some of the defining factors of a DeFi application include permissionless architecture (anyone can participate), transparent and auditable code, and interoperability with other DeFi products. DeFi Score offers a single, consistently comparable value for measuring DeFi platform risk.