WHAT ARE DEFI PROTOCOLS?

Mirakle
3 min readSep 29, 2023

DeFi protocols are blockchain-based financial applications that offer users access to traditional financial services without intermediaries or centralized authorities. They are built on decentralized networks, such as Ethereum, and use smart contracts to execute transactions and manage assets.

There are some common DeFi protocols include decentralized exchanges (DEXs), lending platforms, stablecoins, and prediction markets. Besides, Defi protocols are designed to be transparent, secure, and accessible to anyone with an internet connection, making them an attractive alternative to traditional financial services.

Some key characteristics of the DeFi Protocols:

1. Decentralization: DeFi protocols are built on decentralized networks, such as Ethereum, and use smart contracts to execute transactions and manage assets. This means that there is no central authority controlling the protocol, and users have full control over their assets.

2. Transparency: DeFi protocols are designed to be transparent, with all transactions and data publicly available on the blockchain. This allows users to verify the integrity of the protocol and ensures that there is no foul play.

3. Accessibility: DeFi protocols are accessible to anyone with an internet connection, regardless of their location or financial status. This makes them an attractive alternative to traditional financial services, which often have high fees and strict requirements.

Some common components of DeFi protocols:

1. Decentralized exchanges (DEXs): DEXs allow users to trade cryptocurrencies without intermediaries or centralized authorities. They are built on decentralized networks and use smart contracts to execute trades.

2. Lending platforms: DeFi lending platforms allow users to lend and borrow cryptocurrencies without intermediaries. They use smart contracts to manage loans and ensure that they are repaid.

3. Stablecoins: Stablecoins are cryptocurrencies that are pegged to the value of a fiat currency, such as the US dollar. They are designed to be stable in value and are often used as a medium of exchange in DeFi protocols.

4. Prediction markets: Prediction markets allow users to bet on the outcome of future events, such as elections or sporting events. They are built on decentralized networks and use smart contracts to manage bets and payouts.

The Mirakle Protocol

Mirakle Protocol as an example — is a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees, and leverage trading. Dynamic pricing is supported by SupraOracles.

What are the key features of the Mirakle Protocol?

Mirakle Protocol offers several key features, including low fees, self-custody, community governance, and no KYC requirements. It also supports spot and perpetual futures trading, and users can review their performance with on-chain analytics.

How does the Mirakle Protocol work?

Mirakle Protocol is built on a decentralized network, such as Ethereum, and uses smart contracts to execute transactions and manage assets. Users can connect their wallets to the platform and trade spot and perpetual futures without intermediaries. Liquidity providers earn fees from market making, swap fees, and leverage trading. Community governance tokens are also offered to democratize control of the platform and reward liquidity providers.
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