This is tuseef and I will try to write detail about decentralized finance or DEFI.

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If we define Defi in simple,
"It is not controlled by any central bank or government. Using DEFI balances can be transferred to anyone, from anyone around the world, without the need of a bank or a financial institution."

Financial System Services:

However, transferring the money is only the first of many building blocks in a financial system. Aside from sending money to another, there are variety of services we use today. For Example: **Loans, saving plans, insurance and stock market are all services that are built around money and together create our financial system.

Centralized Finance:

Today our financial system and all its services are completely centralized. Banks, stock market, insurance companies and other financial institutions all have someone in charge, whether it can be a company or a person, that controls and offers these services. Centralized finance system has it risks, mismanagement, fraud and corruption to name a few.

Defi:

Defi is a term given to financial services that have no central authority or someone in charge. Using decentralized money like certain cryptocurrencies, that can also be programmed for automated activities, we can build exchanges, landing services, insurance companies and other organizations that don't have any owner and are not controlled by anyone.

Defi components:

In order to create decentralized financial system, the first thing we need is an infrastructure for programming and running financial services. Ethereum is do it your self for writing decentralized programs also known as decentralized apps. If we are looking to build reliable financial services that people will want to use we will need more stable currency to operate within this system. This is where stable coins come in. These are currencies, that are pegged to the value of real world asset, usually some major currency like the SBD. For the purpose of Defi we we will want to use stable coins that does not use fiat money reserves for maintaining a peg, since this will require some sort of central authority. This is where DAI comes in to game.

DAI STABLECOIN:

DAI is decentralized cryptocurrency which is pegged against the value of US dollar, meaning one DAI equals one US dollar. DAI is backed by crypto collaterals that can be viewed publicly on the Ethereum blockchain. DAI is overcollateralized, meaning if you lock up in a deposit $1 worth of ether, you can borrow 66 cents worth of DAI. As soon as you want your ether back, just payback the DAI you borrowed and the ether will be released. DAI is built on Ethereum (ERC-20 token).

DEX:

Decentralized exchange operate according to set of rules, or smart contracts that allows users to buy, sell cryptocurrencies. When you trade on DEX there is no signup, no exchange operator, no withdrawal fees and no identity verification.

Decentralized money markets:

Services that connect borrows with lenders. You can borrow against cryptocurrency collateral. The process of earning interests on cryptocurrencies, has become extremely popular giving rise to "yeild farming".

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It was my post, and try to participate in contest. I hope i will get support!. Thanks to @steemcurator01 @steemcurator07 and @steemitblog for the awesome contests for us. I can do mistakes, forgive me!!