To start, this article aims to give you a basic understanding of how DEFI works. DeFi stands for decentralized finance, meaning that there is no central controller. Many Defi organizations function as DAOs, decentralized autonomous organizations. This is similar to a company where anyone who holds the token may vote. Today's example is AAVE, one of the largest DeFi sites. If it were a bank, it would be the 63rd largest U.S. bank by deposits. You can deposit a variety of tokens within the site and earn interest based on the supply and demand. You can also borrow against the value of your tokens at the market rate. Unlike a normal bank, the interest rate is set by the market. These loans also have no set repayment schedule. I hope you enjoyed this article. In further articles, I will dive more into depth into the various aspects of the sites and how they work.