Core Defi Operations

Definition ∞ Core DeFi Operations encompass the fundamental financial activities conducted on decentralized blockchain networks, typically through smart contracts. These include lending, borrowing, trading, and providing liquidity without reliance on traditional financial intermediaries. These operations are permissionless, transparent, and executed autonomously based on pre-programmed rules. They form the foundation of the decentralized finance ecosystem.
Context ∞ Understanding core DeFi operations is essential for anyone following digital asset news, as these activities drive much of the innovation and market movement. The sector continuously develops new protocols and financial primitives that expand the scope and efficiency of these operations. Regulatory bodies are increasingly focusing on how to supervise these novel financial services while preserving their decentralized characteristics.