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How Do Smart Contracts Enable Decentralized Finance (DeFi)?

Smart contracts are the foundational building blocks of DeFi. They automate financial services like lending, borrowing, and trading without relying on central authorities.

By codifying financial agreements, they ensure transparent, permissionless, and non-custodial transactions. This removes intermediaries, lowers costs, and increases accessibility to financial services globally.

What Are the Borrowing Costs Associated with Short Selling a Stock?
How Do Smart Contracts Contribute to the Efficiency of Decentralized Lending Protocols?
What Is a “DAO” and How Does It Relate to Trustless Governance?
Is It Possible to Automate Regulatory Compliance Checks within a Smart Contract Itself?