DeFi

Automated market makers (AMMs) enable permissionless token trading without order books. Flash loans enable atomic borrowing and repayment within a single transaction. Liquid staking derivatives enable staked assets to be used as collateral. Cross-chain liquidity aggregation unifies fragmented DeFi liquidity. ZK proofs enable privacy-preserving DeFi transactions.

Decentralized exchanges enable 24/7 token trading without centralized intermediaries. Lending protocols offer variable and fixed-rate borrowing against crypto collateral. RWA protocols tokenize US treasuries and corporate bonds for on-chain yield. Liquid staking enables ETH holders to earn staking rewards while maintaining liquidity.

DeFi and financial infrastructure led the crypto market with $6.2 billion in funding in 2025, representing the strongest institutional demand for decentralized financial services. With 31 funders, DeFi is a key Web3 child sector that has matured from yield-farming speculation to institutional-grade financial infrastructure.