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What is a decentralized money market and how does it work?

2022.08.07 16:49

What is a decentralized money market and how does it work?
What is a decentralized money market and how does it work?

The seamless flow of capital between borrowers and lenders is a key aspect of a vibrant economy. Anyone with an extra asset can lend it to put their idle capital to work, while people needing it to grow business or meet operational costs can easily access it.

Money markets are the platforms where borrowers and lenders can meet. Throughout history, money markets have been generators of economic activities. Though the structure of money markets has altered with time, their role has remained unchanged.

Permissionless

Noncustodial

Overcollateralized

Composability

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