What it means
An onchain pool where people supply money that others borrow, with the interest paid by borrowers going to those who supplied it.
Borrowers must put up more collateral than they borrow, and the smart contract sells it if their loan becomes too risky. That's how lenders are protected, though not perfectly.
How it works
Defied's Markets let you supply USDC or EURC to audited markets such as Aave, Morpho and Compound. The rate is variable and your money can lose value. See Markets.
Related terms
| Term | What it means |
|---|---|
| APY | Annual percentage yield: what a deposit would earn over a year at today's rate, with interest added back as it comes in. |
| Vault | A smart contract that takes deposits and spreads them across lending markets by a set strategy. |
| TVL | Total value locked: how much money is deposited in a protocol or pool right now. |
This glossary explains terms in general. It isn't investment, tax or legal advice.