Is DeFi traceable?

Can you explain whether Decentralized Finance, or DeFi, is traceable and if so, how? It's a topic that's been gaining a lot of attention in the crypto and finance world lately. With the rise of blockchain technology and smart contracts, many are wondering about the level of transparency and accountability in this new financial ecosystem. Are there mechanisms in place to trace transactions and activities within DeFi protocols? And if so, what are the implications for privacy and security in this decentralized space? I'm curious to hear your thoughts on this matter.