Definition ∞ DeFi backbone refers to the foundational protocols, infrastructure, and underlying smart contracts that enable the broader decentralized finance ecosystem. These essential components provide core services such as lending, borrowing, and decentralized exchange, upon which other DeFi applications are constructed. Without a robust DeFi backbone, the functionality and security of the entire decentralized financial system would be compromised.
Context ∞ Discussions around the DeFi backbone in crypto news often pertain to the stability, security, and scalability of these fundamental layers. Developments or vulnerabilities within these core protocols can have widespread implications for the entire DeFi sector, affecting user trust and the operational continuity of numerous financial services.
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