Therefore, people are adopting it wholeheartedly.Smart contracts are a set of automated lines of codes that have been generated with the mutual understanding of the seller and the buyer upon the trading activity.
If both the parties agree on the present conditions, then the smart contract executes its function.
With the help of smart contract activities like lending, borrowing, insurance, banking, and much more can be completed at a more incredible speed consuming less time.We, at Brugu, have Experts in DeFi smart contract development, especially for running DeFi DApps without any vulnerabilities.
We provide smart contract development on various blockchain platforms like TRON, Ethereum, EOS, etc.What Is A Smart Contract?A smart contract is virtual and can technically be defined as a transaction protocol.
It has contributed towards the upliftment of the DeFi protocol in the sector.Roles And Benefits Of Smart Contract-Based DeFi ProtocolDIGITALIZATIONSmart contracts are the set of predefined codes, which has facilitated the DeFi platform to go online and saves the cost of owners and consumersSECURITYSmart contracts are immutable and can not be altered once setEXTERNAL FACTORSNo external factors can interfere and disturb the working of smart contrastFEESDue to the elimination of the third party, the cost is reducedACCURACYDue to the absence of human touch, it can achieve the utmost accuracySPEEDAs it is an automated process, it performs at a higher speedSmart Contracts Are The Backbone Of DeFi ProtocolThe smooth functioning of the DeFi protocol is possible due to the existence of smart contracts.
Therefore, every smart contract needs a predefined and audited to perform in the best possible way.Major Use Cases Of DeFi Smart ContractsDeFi Smart Contracts has applications in multiple industries including:Cryptocurrency ExchangesCryptocurrency exchanges have skyrocketed to the next level due to the integration of smart contracts.Lending and BorrowingDeFi lending and borrowing allows for better security, accountability, and transparency in the financial systemStablecoinsStablecoins are blockchain-issued tokens designed to hold on to a specific amount.Market PredictionsMarket predictions about the ups and downs of cryptocurrencies can be made with DeFi smart contractAsset ManagementAsset management can be done with the wallet integration on the DeFi platformVarious Existing Projects Of DeFi That Utilizes Smart ContractSyntheticSwapping securities and assets are quickly done with the help of smart contractsMakerWith the help of smart contracts on Maker, users can borrow DAI (which is pegged to USD) by depositing the ETH as collateral.Credit & LendingThe credit and Lending service in a decentralized finance platform generates an avenue for traditional financial services, due to which there is an intermediary, and thus, the cost increases.CompoundThe compound is an automated protocol based on Ethereum, which upholds various tokens like BAT, DAI, ETH, USDC, REP, ZRX.