DeFi enables various financial applications, including:
- Lending and borrowing: Users can lend their assets and earn interest or borrow without a traditional bank.
- Decentralized exchanges (DEXs): Platforms that allow users to trade cryptocurrencies directly from their wallets.
- Stablecoins: Cryptocurrencies designed to maintain a stable value, often pegged to fiat currencies.
- Yield farming and staking: Methods to earn rewards by providing liquidity or securing a network.
- Insurance and synthetic assets: Smart contract-based solutions offering risk management and asset tokenization.
