Radix DeFi Ecosystem

A stablecoin is a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. Stablecoins have become popular as they provide the instant processing and security or privacy of cryptocurrencies' payments along with the volatility-free stable valuations of fiat currencies.

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Stablecoins base their market value on an external reference. This could be a currency like the U.S. dollar or a commodity's price such as gold. Stablecoins achieve price stability via collateralization or algorithmic buying and selling of the reference asset or its derivatives.

In lending, borrowers pledge their crypto assets as collateral and avail loans in stablecoins or other crypto assets as a means of financing.

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However, unlike TradFi, DeFi lending uses algorithmic systems where lending and borrowing rates are determined automatically based on each asset's real-time supply and demand. 

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This automated approach means more flexibility and access for anyone looking for financing.

Insurance protocols provide cover against smart contract failure & exchange hacks using a decentralized protocol, so people can share risk without needing an insurance company.

Futures

A futures contract is an arrangement between two users on an exchange to buy and sell an underlying crypto asset at an agreed-upon price on a certain date in the future.

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Options

Options give the holder the right to buy (call) or sell (put) an underlying crypto asset at a set date without being obligated. 

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Synthetic Assets

Synthetic assets, also known as synths, are an asset class formed by combining cryptocurrencies and traditional derivative assets, making them tokenized derivatives.

Portfolio Management

Automated asset management lowers the barrier to entry for the regular users looking to invest in crypto. Instead of managing multiple accounts and wallets, crypto asset management platforms simplify the process by consolidating the user's holdings while simultaneously providing improved portfolio management tools, resulting in better returns.

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Yield farming

Yield farming is the practice of staking or lending crypto assets to create high returns or rewards in the form of additional cryptocurrency. Yield farming protocols incentivize liquidity providers (LP) to stake or lock up their crypto assets in a smart contract-based liquidity pool. These incentives can be a percentage of transaction fees, interest from lenders, or a governance token.

NFTs are unique digital items such as collectibles or artworks or game items. As an artist, you both ensure that it is unique and brand it as your work by tokenizing your work. The actual ownership is blockchain-managed.

Since we have so many gamers who spend endless hours and money on gaming platforms, DeFi gaming platforms will enable them to monetize their time and progress. The play-to-earn games offer the best of both worlds - they provide an entertaining experience and make playing games lucrative.

An oracle acts as a reliable data source and sends data from the outside physical world, such as match scores or current market value of stocks or currencies, to a blockchain. An interacting app can then use this data to decide if the specified contract requirements are fulfilled or not, based on which, whether to dispense money and to whom.