What it means
A set of smart contracts with its own rules that provides a service onchain, such as lending or trading.
Aave, Morpho and Uniswap are protocols. Apps, including Defied, let you use them from a simple screen.
How it works
Each protocol has its own risks, which you take on when you deposit.
Related terms
| Term | What it means |
|---|---|
| Smart contract | A program that lives on a blockchain and runs exactly as written, holding and moving tokens by its own rules. |
| DeFi | Decentralised finance: lending, borrowing and exchanging that runs on public smart contracts instead of through a bank. |
| DAO | Decentralised autonomous organisation: a group that runs a protocol by token holders' votes rather than a company's management. |
This glossary explains terms in general. It isn't investment, tax or legal advice.