DeFi(Decentralized Finance) is one of new innovations based on decentralized distributed technology on blockchain. DeFi minimizes financial risks including market risk, credit risk, and operational risk that lies in the current financial system. It will ultimately revolutionize financial system by creating a new demand and perspective. It does not rely on the traditional financial system where multiple intermediaries are present for the process of credit evaluation, screening borrowers and so on. Instead, smart contracts are deployed for transaction settlement enhancing transparency and credibility. In addition, the system that works for providing financial services and the governance for decision - making become decentralized to mitigate financial risks that users frequently face with current financial services.