Business Models for Building a Decentralized Finance (DeFi) Platform
Decentralized Finance (DeFi) has emerged as one of the most innovative sectors within the blockchain and cryptocurrency space. By leveraging blockchain technology, DeFi platforms offer financial services without intermediaries like banks or brokers. For entrepreneurs and developers looking to enter this space, understanding the business models for building a decentralized finance (DeFi) platform is crucial to creating sustainable and scalable ventures.
What is a DeFi Platform?
A DeFi platform provides financial services such as lending, borrowing, trading, and asset management on a blockchain network through smart contracts. The decentralized nature enables transparency, reduced costs, and global accessibility, disrupting traditional financial systems.
Common Business Models for DeFi Platforms
1. Liquidity Provision and Yield Farming
In this model, users supply cryptocurrency liquidity to decentralized exchanges (DEXs) or lending protocols. The platform incentivizes liquidity providers with rewards, typically in the form of tokens or fees. The DeFi platform generates revenue by charging transaction …









