Defi is one of the most dynamic innovations in crypto. As a sector, it is still evolving, but it has the potential to bring important improvements to traditional finance -- that can enable greater access to capital and new opportunities for wealth creation.
The Algorand blockchain enables DeFi applications to operate at tremendous scale, with low transaction costs, and with a negligible carbon footprint. Learn more below.
Global accessibility to capital markets is a fundamental building block of Algorand DeFi. Borrowing and lending platforms allow users to lend and borrow all types of Algorand assets. Whether it's borrowing native Algo or ASAs, users can partake in an environment of trustless lending, removing the need for third-party involvement.
Decentralized exchanges further build on the promise of decentralized finance, users are able to provide liquidity to facilitate the exchange of their favorite ASAs and stablecoins. Most importantly, users can transact their assets without any intermediary facilitating the exchange.
Stablecoins are digital assets designed to maintain a stable value, typically linked to a fiat currency or a commodity for transacting and accounting. In real-world instances, stablecoins are used for cross-border payments and function as banking infrastructure for those without access, increasingly growing in popularity worldwide.
In the process of liquid governance, DeFi applications provide governance services on behalf of its end-users. Through this, users can commit their Algo to DApps, allowing them to participate in governance through their offerings. With the many types of services offered, the primary purpose is to enable users to obtain governance yields on top of any potential DeFi yields.
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