DeFi Basics
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Decentralized Finance, or DeFi for short, encompasses financial services such as lending and borrowing on various blockchains like Ethereum and Binance Smart Chain.
A key feature of DeFi is the elimination of slow and costly (often human controlled) portions of financial services through the use of computer automated agreements known as smart contracts. DeFi's use of smart contracts allows many types of financial transactions to flow based on logic-based predefined conditions including the borrowing and lending of assets.
Smart contracts work to approve or deny transactions based purely on publicly reviewable conditions in the smart contracts rather than the outcome of a transaction being centralized and controlled by a single person or team as is typical in a traditional financial institutions.
Read about fees, which are known as "gas" in DeFi slang or "gwei" for the technical term on the Ethereum network.
DeFi is relatively new and there have been many instances of users losing their funds due to malicious actors or unintentional bugs in protocol and platform software.
Dracula Protocol is open-source and has completed community audits, but those qualifications alone does not make using the protocol risk-free.
Read our explanation of front-running in the glossary and how it effects swapping tokens in DeFi.
Read about and Automatic Market Makers (AMM.)
Check out the function of (IL.)
Review the Dracula Protocol articles on and .
either by installing the MetaMask mobile app or adding the extension to your favorite browser (Chrome or Firefox).
Always do your own research about the underlying platform where you are depositing your assets. We cannot guarantee the security of other platforms or the safety of your assets on those platforms.
See in the Community section.
covers how Dracula Protocol interacts with the DeFi ecosystem.
