Decentralised Finance or DeFi has emerged as a transformative and
disruptive force within the financial industry, offering innovative
financial services powered by blockchain technology and smart
contracts. This paper provides in-depth knowledge of DeFi, its
evolution, applications, and their adoption. It identifies the
opportunities brought about by DeFi, comparing it with the traditional
CeFi (Centralized Financial) system, including financial inclusion,
transparency, and programmable money. It highlights the potential of
applications of DeFi for decentralized lending, decentralized
exchanges, and yield farming as innovative and promising avenues
within the DeFi space. A SWOT analysis comparing DeFi and CeFi
was performed to delve into the strengths, weaknesses, opportunities,
and threats associated with DeFi. This study explored the intricate
challenges and inherent risks involved in the adoption of DeFi
applications, offering insights into the hype, fear, and apprehensions
among governments and the masses regarding its adoption. The
findings offer a nuanced understanding of the current state of DeFi,
providing valuable insights for researchers, policymakers, and industry
practitioners.