FQAs

DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.

AMMs facilitate swaps using deposits from liquidity providers, who are in turn rewarded with trading fees for putting up their crypto tokens to make trades possible. Instead of an order book, trades are matched automatically using pooled liquidity and require no dedicated accounts or identity checks, as is required at most centralized exchanges.