The article "A Review on Decentralized Finance Ecosystems" by Andry Alamsyah, Gede Natha Wijaya Kusuma, and Dian Puteri Ramadhani explores the emerging field of decentralized finance (DeFi) and its integration with blockchain technology. The authors highlight the growing importance of DeFi in the financial sector, noting that as of January 2023, the DeFi crypto market capitalized USD 46.21 billion and served over 6.6 million users. DeFi offers several advantages over traditional finance (TradFi), including reduced fees, increased inclusivity, faster transactions, enhanced security, and improved accessibility. However, the rapid growth of DeFi has also led to a lack of comprehensive research on its benefits and risks. The research aims to address this gap by developing a DeFi classification system, organizing information, and clarifying connections among various aspects of DeFi. The study employs a qualitative approach, using literature reviews and phenomenological research to gather background knowledge and construct a taxonomy of DeFi. The taxonomy is structured into four dimensions: advantages, risks, products/services, and technology. Each dimension is analyzed in detail, exploring the underlying technologies, potential threats, and their interconnections. Key findings include the significant role of peer-to-peer (P2P) transactions, smart contracts, decentralized autonomous organizations (DAOs), and decentralized applications (DApps) in the DeFi ecosystem. P2P transactions enable direct and secure financial interactions, while smart contracts automate financial processes and enhance security. DAOs and DApps further contribute to the decentralized nature of DeFi, providing self-governance and innovative financial solutions. The authors also discuss the challenges and opportunities presented by DeFi, including regulatory hurdles, the potential for innovation, and the need for responsible integration into TradFi. The research concludes with a comprehensive DeFi taxonomy, which aids experts, regulators, and decision-makers in understanding and managing the risks associated with DeFi. This taxonomy enhances the transparency and security of DeFi, promoting its responsible integration into the financial landscape.The article "A Review on Decentralized Finance Ecosystems" by Andry Alamsyah, Gede Natha Wijaya Kusuma, and Dian Puteri Ramadhani explores the emerging field of decentralized finance (DeFi) and its integration with blockchain technology. The authors highlight the growing importance of DeFi in the financial sector, noting that as of January 2023, the DeFi crypto market capitalized USD 46.21 billion and served over 6.6 million users. DeFi offers several advantages over traditional finance (TradFi), including reduced fees, increased inclusivity, faster transactions, enhanced security, and improved accessibility. However, the rapid growth of DeFi has also led to a lack of comprehensive research on its benefits and risks. The research aims to address this gap by developing a DeFi classification system, organizing information, and clarifying connections among various aspects of DeFi. The study employs a qualitative approach, using literature reviews and phenomenological research to gather background knowledge and construct a taxonomy of DeFi. The taxonomy is structured into four dimensions: advantages, risks, products/services, and technology. Each dimension is analyzed in detail, exploring the underlying technologies, potential threats, and their interconnections. Key findings include the significant role of peer-to-peer (P2P) transactions, smart contracts, decentralized autonomous organizations (DAOs), and decentralized applications (DApps) in the DeFi ecosystem. P2P transactions enable direct and secure financial interactions, while smart contracts automate financial processes and enhance security. DAOs and DApps further contribute to the decentralized nature of DeFi, providing self-governance and innovative financial solutions. The authors also discuss the challenges and opportunities presented by DeFi, including regulatory hurdles, the potential for innovation, and the need for responsible integration into TradFi. The research concludes with a comprehensive DeFi taxonomy, which aids experts, regulators, and decision-makers in understanding and managing the risks associated with DeFi. This taxonomy enhances the transparency and security of DeFi, promoting its responsible integration into the financial landscape.