Automated Finance

Definition ∞ Automated finance refers to financial operations executed by algorithms or software without human intervention. This encompasses systems like decentralized autonomous organizations (DAOs), smart contracts automating lending or trading, and programmatic asset management. Such automation aims to increase efficiency, reduce costs, and remove intermediaries from traditional financial processes. These systems often operate on blockchain infrastructure, ensuring transparency and immutability.
Context ∞ The discussion around automated finance frequently centers on its potential to revolutionize traditional banking and investment by offering permissionless access to financial services. A critical development to observe involves the ongoing regulatory efforts to classify and govern these novel financial instruments and protocols. Additionally, the robustness and security of the underlying code remain a key focus for users and developers.