Several core components of DeFi, including:
a. Stablecoins: Digital tokens pegged to traditional assets like fiat currencies, which provide stability and ease of use in DeFi transactions.
b. Decentralized exchanges (DEXs): Platforms that facilitate peer-to-peer asset trading without relying on a centralized authority to match orders.
c. Lending platforms: Decentralized protocols that enable users to lend or borrow assets based on smart contracts, typically with over-collateralization to manage risk.
d. Asset management: Tools and platforms that provide automated or user-controlled investment strategies based on DeFi protocols.
e. Derivatives and synthetic assets: Decentralized financial products that track the performance of underlying assets.