DeFi Interactions

Definition ∞ DeFi interactions refer to the engagements users have with decentralized finance protocols and applications. These interactions include lending, borrowing, trading, yield farming, and providing liquidity on blockchain-based platforms. Users typically connect their digital wallets to these protocols to execute smart contract functions. Such interactions represent a fundamental aspect of the decentralized economy.
Context ∞ The complexity and security of DeFi interactions are frequently discussed in crypto news, particularly concerning smart contract vulnerabilities or user experience improvements. Understanding these interactions is crucial for grasping the functionality and risks associated with various decentralized applications. Innovations in user interfaces and interoperability aim to simplify and secure DeFi engagements for a broader audience.