Definition ∞ DeFi working capital represents the readily available liquid assets within decentralized finance protocols, essential for supporting operational requirements, providing liquidity for trading pairs, or collateralizing lending activities. This capital is fundamental to the continuous and efficient functioning of decentralized financial services.
Context ∞ The assessment of financial resilience and operational capacity within the DeFi sector relies heavily on the status of working capital. Adequate and well-managed working capital is a key indicator of a protocol’s ability to maintain liquidity, facilitate transactions, and withstand periods of market volatility, ensuring ongoing service provision.
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