Decentralized Finance (DeFi): A Comprehensive Study of Protocols and Applications
Keywords:
Decentralized Finance, DeFi, Blockchain TechnologyAbstract
Decentralized Finance (DeFi) based on blockchain technologies produces an open, transparent, easily available financial framework. This paper investigates DeFi technologies, applications, principles, components, and protocols. DeFi questions financial system dominance by distributedly replicating and improving financial services.
Apply the distributed network, smart contract, and blockchain of DeFi. It illustrates DeFi methods of asset management, lending, borrowing, and trading decentralizing. Evaluated for DeFi ecosystem contributions include Aave, MakerDAO, compound, and uniswap. A protocol makes use of tokenomics, governance, and smart contracts.
Studies on DeFi's impact on traditional banks center on Lower transaction costs, no intermediaries, and financial inclusiveness are among DeFi's financial offerings. Unlike traditional banking, DeFi is open, flexible, and easily available, says study.
Driven by smart contracts, protocol threats, and limitations, DeFi security research is Insurance, formal validation, and code audits lower DeFi protocol risks, the study found. One also controls DeFi's expansion. Studies demonstrate that DeFi applications are distributed globally and decentralized, which complicates control. Regulators balance innovation and compliance as they create DeFi standards.
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