DeFi Category

Automated Money Markets

Money markets allow crypto users to lend assets and borrow against them via smart contracts. Interest rates for supplying and borrowing are based on the pool of funds and how much of this pool has been borrowed from. So if there’s 100 ETH in a pool and 99 ETH of that is lent, the APY will be higher for both lending and borrowing and fluctuate as users start and unwind positions.