How does the DeFi ecosystem work?

DeFi (Decentralized Finance) is an ecosystem of financial applications running on blockchains without traditional intermediaries like banks or brokers. Instead, it relies on smart contracts.

Smart contracts are blockchain based programs that automatically execute predefined rules and actions.
They are fundamental to DeFi, enabling automation, transparency, and trustless transactions – all without intermediaries.

What is a DeFi Protocol?

A DeFi protocol is a system of smart contracts designed to perform a specific financial function.

Each protocol offers its own set of services.
The core ones include:
1. Decentralized Exchanges (DEX)
2. Synthetic Assets – Syde Protocol
3. Lending & Borrowing
4. Yield Farming & Staking

Syde Protocol is a DeFi protocol on the TON blockchain, specializing in synthetic derivatives.

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