DeFi (decentralized finance) refers to smart-contract protocols that provide financial services without a traditional intermediary: swaps, lending/borrowing, liquidity pools, derivatives, etc.
Tax complexity comes from many small events (wraps, LP mint/burn, reward claims, liquidations) that may each be a disposal or income event under local rules.
Why it matters: DeFi histories are where DIY tax software most often needs human review.
Educational definition — not tax advice. Rules vary by country.
