DeFi Tokens

Definition ∞ DeFi Tokens are digital assets issued on a blockchain that facilitate participation in Decentralized Finance (DeFi) protocols. These tokens can represent ownership, grant governance rights, or function as utility within a specific DeFi application. Their value and utility are intrinsically linked to the performance and adoption of the underlying decentralized financial services.
Context ∞ The current landscape for DeFi Tokens is characterized by rapid innovation and evolving utility, with significant attention paid to governance tokens that allow holders to vote on protocol upgrades and parameter changes. Discussions frequently revolve around tokenomics, yield farming opportunities, and the potential for regulatory classification as securities, impacting their market dynamics.