RESEARCH PROGRESS ON DECENTRALIZED FINANCE

Abstract

Decentralized Finance (DeFi) has emerged as one of the most transformative applications of blockchain technology, constructing a financial ecosystem that operates without traditional intermediaries through smart contracts and distributed protocols. This paper systematically reviews the research progress of DeFi in terms of technical architecture, core protocols, governance models, and application scenarios, with particular focus on analyzing key domains including lending platforms, decentralized exchanges, stablecoin mechanisms, and asset tokenization. Research indicates that although DeFi demonstrates revolutionary potential in enhancing financial inclusion and transaction efficiency, it still faces significant challenges in smart contract security, regulatory compliance, and systemic risk prevention. This paper further explores future research directions including the integration of DeFi with traditional finance, technological innovation, and real-world asset integration, providing reference for scholars, policymakers, and industry participants to understand this rapidly evolving field.