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The role of crypto exchanges in enabling the growth of decentralized finance (DeFi)
Decentralized finance (DeFi) refers to a new financial system built on blockchain technology, which allows for peer-to-peer transactions without the need for intermediaries. Crypto exchanges play a vital role in enabling the growth of DeFi by providing a platform for buying, selling, and trading cryptocurrencies, which are the backbone of the DeFi ecosystem. They also facilitate access to liquidity pools, which are essential for DeFi protocols to function. In addition, crypto exchanges are often the first point of entry for users to access DeFi applications and protocols, making them an important gatekeeper for the entire ecosystem. Through the use of smart contracts and decentralized infrastructure, DeFi protocols can offer a wide range of financial services, such as lending and borrowing, insurance, and more. As DeFi continues to grow, crypto exchanges will be an integral part of this new financial system.

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