DeFi & Yield

What is a money market protocol in DeFi?

A money market protocol in DeFi is a set of smart contracts that lets users lend crypto to earn interest and borrow against collateral, with rates set algorithmically by supply and demand. Lenders deposit assets into a shared pool; borrowers draw from it by posting more collateral than they take out. For example, you might supply a stablecoin to earn a variable rate while someone else borrows it against their crypto. Rates fluctuate, and borrowers can be liquidated if collateral falls. Returns are not guaranteed, and you carry smart-contract and liquidation risk. We bring documented methodology to crypto positioning at Qatobit. Read our research.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.