> For the complete documentation index, see [llms.txt](https://sinqlarity.gitbook.io/sinqlarity-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sinqlarity.gitbook.io/sinqlarity-docs/use-cases/defi.md).

# DEFI

DeFi smart contracts are used to build decentralized financial applications, such as decentralized exchanges (DEXes), lending protocols, and yield aggregators.

* **Lending and borrowing:** These contracts allow users to lend and borrow assets, typically through a pool of liquidity. Examples include Aave, Compound, and MakerDAO.
* **Decentralized exchanges (DEXes):** These contracts allow users to trade assets without the need for a central authority. Examples include Uniswap, SushiSwap, and PancakeSwap.
* **Yield aggregators:** These contracts help users maximize their returns on their crypto assets by automatically investing them across different lending and DEX protocols. Examples include yearn finance and convex finance.
* **Derivatives:** These contracts allow users to speculate on the future price of assets. Examples include Synthetix and dYdX.
* **Asset Management:** These contracts allow users to invest in and manage a diversified portfolio of crypto assets. Examples include Set Protocol and Index Coop.
* **Insurance:** These contracts allow users to purchase insurance against losses due to hacks, scams, and other events.