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What Are the Primary Use Cases for Smart Contracts?

Smart contracts automate agreements, executing terms without intermediaries when predefined conditions are met. In Decentralized Finance (DeFi), they enable lending, borrowing, and Automated Market Makers (AMMs).

They are fundamental for creating tokenized financial derivatives and options, allowing for trustless, on-chain settlement. This automation significantly reduces operational costs and counterparty risk in finance.

They ensure transparency and immutability for all recorded transactions.

How Do Digital Signatures Enable “Trustless” Execution in DeFi?
How Do Smart Contracts Relate to Decentralized Finance (DeFi)?
What Is the Difference between a Smart Contract and a Traditional Financial Derivative?
How Do Smart Contracts Contribute to the Efficiency of Decentralized Lending Protocols?