On-Chain Financial Economy

Definition ∞ The on-chain financial economy encompasses all economic activities, transactions, and financial protocols that operate directly on a blockchain network. This includes decentralized exchanges, lending platforms, stablecoins, and various other financial instruments. It represents a transparent and programmable financial ecosystem.
Context ∞ News outlets frequently cover the rapid expansion and innovation within the on-chain financial economy, often referred to as decentralized finance. This ecosystem presents new opportunities for financial services and global access, but also introduces unique risks and regulatory challenges. Its growth signifies a significant shift in the structure of global finance.