Duende literally means "goblin" or "elf", a creature from folklore. It's a fantastical and surprising word to find in a high-energy dembow track.
In the song, El Alfa uses it to describe a state of being completely carried away by the party's atmosphere. He sings "la nota me tiene hasta viendo duende'", meaning "the vibe/high has me even seeing goblins", painting a vivid and humorous picture of being totally lost in the moment.
Get ready for a trip to the Caribbean island of Curaçao, but this isn't your typical relaxing beach vacation. El Alfa and Farruko throw a wild, high-energy party in this song, and the main theme is repeated over and over: "Las pastillas y la weed" (The pills and the weed). The track is all about living a fast, hedonistic lifestyle, set against the backdrop of this famous party destination.
Both artists use their verses to boast about their success and power. El Alfa makes it clear he's on another level, saying "El yate que yo quiero tiene un helipuerto arriba" (The yacht I want has a helipad on top) and dismissing his haters as "mucho humo y poca nota" (a lot of smoke and little effect). Farruko continues this boss-like attitude, claiming the high has him "viendo duende'" (seeing goblins) and warning everyone not to follow him because "voy acelerao'" (I'm speeding). It's a song about being completely over the top, untouchable, and in the middle of an unforgettable party.