DeFi vs Protocol Token

Quick comparison to help you distinguish these two crypto terms.

DeFi
beginner
strategy

A blockchain-based financial system enabling lending, borrowing, trading, and earning interest on cryptocurrency without traditional banks or intermediaries through automated smart contracts.

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Protocol Token
intermediate
fundamentals

A cryptocurrency token native to a specific blockchain protocol or decentralized application, often combining governance rights, utility functions, and value capture mechanisms tied directly to protocol success and usage.

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