# DeFi

## Definition

DeFi, or decentralized finance, is a category of blockchain applications that provide financial functions such as exchange, lending, borrowing or liquidity through smart contracts.

## What it means in practice

DeFi services can reduce dependence on centralized intermediaries, but they introduce smart-contract, liquidity, oracle, governance and user-signing risks.

## How this concept appears in Terenval Wallet

Terenval Wallet can be used as a non-custodial signing wallet with compatible DeFi dApps through WalletConnect on supported networks.

**Important:** DeFi yield or liquidity positions are separate from ordinary wallet balances and can expose assets to protocol-specific risks.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [dApp](https://wallet.terenval.com/glossary/dapp/)
- [smart contract](https://wallet.terenval.com/glossary/smart-contract/)
- [Decentralized exchange](https://wallet.terenval.com/glossary/decentralized-exchange/)
- [Lending protocol](https://wallet.terenval.com/glossary/lending-protocol/)
- [Liquidity pool](https://wallet.terenval.com/glossary/liquidity-pool/)
- [walletconnect](https://wallet.terenval.com/glossary/walletconnect/)

## Related Terenval Answers

- [How to Secure a Non-Custodial Crypto Wallet](https://wallet.terenval.com/answers/how-to-secure-non-custodial-crypto-wallet/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)
- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)

## Sources

- https://ethereum.org/en/defi/
- https://docs.walletconnect.network/
- https://wallet.terenval.com/info/security/

Official page: https://wallet.terenval.com/glossary/defi/