A DeFi Smart Contract is a self-executing contract with the terms encoded directly into code that is used in decentralized finance (DeFi) systems. These contracts, which operate on blockchain networks such as Ethereum, allow safe and transparent financial transactions without the need for middlemen such as banks. Processes including lending, borrowing, trading, and earning interest on digital assets are automated by them. Transactions are automatically completed whenever contract criteria are satisfied, which lowers expenses and human error. Financial services are now more accessible and efficient as a result. DeFi smart contracts guarantee that every transaction is validated by the blockchain, offering users a transparent and safe means of communication in a trustless setting.