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Money Market

Definition

A Money Market in the digital asset context refers to a decentralized finance (DeFi) protocol that allows users to lend and borrow digital assets. These platforms typically pool user deposits to provide liquidity, enabling others to borrow assets in exchange for collateral and interest. They are crucial for facilitating short-term financing and yield generation within the cryptocurrency ecosystem. The stability and interest rates offered by these markets are sensitive to overall liquidity conditions and asset volatility.