Definition ∞ A decentralized finance broker acts as an intermediary facilitating access to various DeFi protocols and services, often without holding custody of user assets. These brokers leverage smart contracts and automated market makers to enable lending, borrowing, and trading directly on blockchain networks. Unlike traditional brokers, they operate within a permissionless and transparent ecosystem. Their function is to simplify user interaction with complex DeFi offerings.
Context ∞ The emergence of decentralized finance brokers represents a significant evolution in how users interact with digital asset markets, offering greater autonomy and potentially lower fees. Discussions often concern the regulatory status of these entities, particularly regarding consumer protection and anti-money laundering obligations. Future developments may involve clearer regulatory guidance distinguishing DeFi brokers from traditional financial intermediaries.
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