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  2. /Glossary
  3. /Money Market
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defi

Money Market

In DeFi, a protocol where users can lend and borrow assets against collateral.

Definition

In DeFi, a protocol where users can lend and borrow assets against collateral. Aave, Compound, and Morpho are popular money markets. Unlike peer-to-peer lending, these use pooled liquidity and algorithmic interest rates that change based on how much of the pool is being borrowed.

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Related Terms

Lending Protocol

A DeFi application that lets you lend your crypto to earn interest or borrow against your holdings.

Collateral

Assets you put up as security when borrowing.

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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