What is a DeFi protocol?
A DeFi protocol is a software program that runs on a blockchain network.
Protocols allow users to access a variety of financial services in a decentralized manner. These services include lending, borrowing, trading, and asset management, among others.
One of the key features of DeFi protocols is that they are open-source, meaning that anyone can access and use them without permission. Additionally, they are built on blockchain technology, which provides transparency, immutability, and security.
DeFi protocols operate using smart contracts.
These are self-executing agreements that automatically enforce the terms and conditions of the contract.
This means that users can trust that the protocol will perform as intended, without the need for intermediaries or centralized authorities.
DeFi protocols also typically use cryptocurrencies as their native assets, such as Ethereum or USDC. This allows for seamless and cost-effective transactions within the protocol, as well as for users to benefit from the potential value appreciation of these assets.
Overall, DeFi protocols offer a decentralized, transparent, and accessible alternative to traditional financial services. While the technology is still in its early stages, the potential for disruption and innovation in the financial industry is significant.
Connect your app to DeFi protocols with Conduit
There are thousands of DeFi protocols, or dApps, and more are launched every week. It can be hard to determine which are secure from hacks, liquidity risks and other potential issues.
With the Conduit API, you can connect your app to DeFi protocols curated by Conduit.