--- title: "Decentralized finance (DeFi)" id: "3375" type: "page" slug: "defi" published_at: "2025-10-21T21:30:32+00:00" modified_at: "2026-04-10T20:03:55+00:00" url: "https://hedera.com/use-cases/defi/" markdown_url: "https://hedera.com/use-cases/defi.md" excerpt: "decentralized finance (defi) Redefine DeFi DeFi, or decentralized finance, uses smart contracts—self-executing code on blockchain networks—to automate financial transactions and services. With unmatched throughput, EVM-compatibility, predictable fees, and no front running, Hedera is an ideal backbone for high-frequency and enterprise-grade..." --- decentralized finance (defi) # Redefine DeFi DeFi, or decentralized finance, uses smart contracts—self-executing code on blockchain networks—to automate financial transactions and services. With unmatched throughput, EVM-compatibility, predictable fees, and no front running, Hedera is an ideal backbone for high-frequency and enterprise-grade DeFi. infrastructure built to power defi ## The trusted way to DeFi Hedera provides the speed and consistency DeFi protocols demand, from high-volume trades to flash loans and arbitrage strategies. #### Keep costs predictable With low, fixed USD-denominated fees, Hedera helps projects avoid volatile gas costs, reduce total cost of ownership, and stay user-friendly. #### Fair ordering with no front running Transactions are guaranteed to be ordered sequentially and fairly, so there’s no threat of frontrunning. Hedera doesn’t use a mempool to hold transactions before processing, which removes opportunities for node bribery or manipulation. #### EVM compatibility and native performance Tokens minted on Hedera are native to the network and map to ERC-20, 721, and 1155 standards. Tokens benefit from the same performance, security, and low fees of Hedera. #### Familiar languages lower barrier to entry Build in Solidity, Vyper, and more with full EVM support. Hedera also supports multiple programming languages through its SDKs, including Java, JavaScript, Go, Rust, C++, and Python. composable and interoperable ## Foundational building blocks for DeFi protocols Hedera powers a vibrant and growing DeFi ecosystem where primitives and applications are fully composable and interoperable. This enables both institutional players and community builders to innovate faster. [#](#) [#](#) | Function | Description | Examples | | --- | --- | --- | | Lending & borrowing | Users can lend crypto and earn interest, or borrow assets by providing collateral | | | Decentralized exchanges (DEXs) | Peer-to-peer token swaps without a centralized exchange | | | Stablecoins | Cryptocurrencies pegged to fiat or assets to reduce volatility | | | Yield farming and staking | Earning rewards by providing liquidity or locking tokens | | | Launchpads | Fundraising and token launches for new projects | | | Derivatives and synthetic assets | Trading products that mimic stocks, commodities, or indexes | | | Payments and remittances | Fast, low-cost transfers without banks | | ## On and off ramps Move seamlessly between fiat and crypto through Hedera’s partnerships with payment providers, bridges, oracles, and fintech firms. [#](#) [#](#) | Onramps | Oracles | | --- | --- | | | | ## Funding ecosystem development [Hedera Foundation](https://hedera.foundation/) supports and funds DeFi protocols by driving multi-chain integrations to broaden interoperability and access to the Hedera network. The Foundation also deploys substantial resources towards the creation of DeFi projects that benefit the Hedera network. Proposals are assessed on a rolling basis. [Submit Funding Proposal](https://hedera.foundation/submit-a-proposal) case studies Leading institutions trust Hedera for DeFi [#](#) [#](#) [View All](/case-studies/) Unlocking seamless access to the Hedera Network As Hedera’s leading non-custodial wallet, HashPack delivers seamless access to DeFi, NFTs, and dApps. [Case Study](/case-study/hashpack/) Bringing trusted cross-chain connectivity to Hedera With Chainlink’s CCIP, Data Feeds, and Proof of Reserve now live on Hedera, developers gain trusted cross-chain connectivity, high-quality data, and verifiable asset transparency. [Read More](/case-study/chainlink-labs/) The pioneering DEX on Hedera SaucerSwap launched its DEX on the Hedera network thanks to the ability to conduct financial transactions, including token swaps through a smart contract service [Case Study](/case-study/saucerswap/) featured resources Expert insights to guide your DeFi journey [#](#) [#](#) [View All](/case-studies/) hederacon panel **DeFi on Hedera: growth, innovation, and what’s next** Hear from leading builders at HederaCon 2025, as they unpack Hedera’s DeFi momentum—exploring what’s driving record TVL growth, how low fees and fast consensus empower new financial models, and what’s ahead for the ecosystem. [Watch Replay](https://www.youtube.com/watch?v=iunJ5sNIxaM) hederacon panel **Why wallets need a refresh** Leading wallet innovators discuss how user expectations, cross-chain complexity, and new DeFi capabilities are reshaping the wallet experience—and what’s next for the Web3 gateway. [Watch Replay](https://www.youtube.com/watch?v=FTXUdQ6dTf8) hederacon interview **Powering Hedera’s liquidity layer** CEO Brady Gentile shares how Bonzo Finance is building the foundation for advanced DeFi on Hedera—unlocking lending, borrowing, and derivatives through the network’s fast, low-cost infrastructure. [Watch Replay](https://www.youtube.com/watch?v=Zz2w9M7NJaY) hederacon interview **A fireside chat with Canary Capital’s Steven McClurg** Canary Capital CEO Steven McClurg and Hedera Foundation’s Gregg Bell discuss the first proposed Hedera HBAR spot ETF, the evolving crypto ETF landscape, and what’s driving institutional adoption. [Watch Replay](https://www.youtube.com/watch?v=2Ro23KW9e0s) hedera foundation blog **Hedera makes history as the HBAR ETF launches** Out of the 19 million+ cryptocurrencies tracked onchain, HBAR is the third to have achieved spot ETF status in the US. The Canary HBAR ETF officially began trading on Nasdaq at 9:30am EST on October 28, cementing Hedera’s position as the only institutional-grade network with regulated, institutional market access. [Read Blog](https://hedera.foundation/blog/hedera-makes-history-with-canary-etf-launch) hedera foundation blog **How developers can build breakthrough DeFi Dapps on Hedera** Dive into this Hedera Foundation blog to see why Hedera’s unique architecture, native token services, and highly scalable EVM are creating a first-mover opportunity to build on a blockchain designed to accommodate some of the biggest enterprises and institutions. [Read Blog](https://hedera.foundation/blog/build-next-generation-defi-on-hedera) hedera foundation blog **Swarm enables DeFi-compliant stocks on Hedera** In this blog, Hedera Foundation discusses the strategic collaboration with Swarm, a real-world asset (RWA) protocol, to launch tokenized stocks on the Hedera network. With this launch, equities like Apple, Tesla, and MicroStrategy will be made available on-chain, which are backed 1:1, insolvency-protected, DeFi-compatible and accessible to both retail and institutional investors. [Read Blog](https://hedera.foundation/blog/swarm-enables-compliant-stocks-on-hedera) see what others are saying Trusted for the real world [#](#) [#](#) [View All](/case-studies/) We’re excited to see the Chainlink standard for cross-chain interoperability live on Hedera mainnet. Along with Chainlink Data Feeds and Proof of Reserve on Hedera, CCIP enables developers to build secure cross-chain apps that drive adoption and expand Hedera’s DeFi and tokenized RWA ecosystems. Thodoris Karakostas Head of Blockchain Partnerships [Read More](/case-study/chainlink-labs/) Hedera has some obvious advantages to other L1 blockchains, including those around speed, trust, and cost, and allows us to think pretty openly and get creative about what a DEX can be and what kind of functionality we can offer to our users. Peter Campbell Co-founder & Operations [Read More](/case-study/saucerswap/) Our team felt that the projects promoting themselves as trading solutions for tokenized assets were missing the mark. They couldn’t really leverage the benefits that DeFi had to offer and still be compliant – let alone accessible to, and most importantly trusted by, individual and institutional investors. So that’s when we set out to create our own solution. Katie Evans Chief Business Development Officer [Read More](/case-study/swarm/) By continuing to prioritize education, user experience, and security while fostering innovation, we’re helping make the network accessible to everyone. Hedera’s enterprise-ready infrastructure combined with HashPack’s seamless interface creates a powerful foundation for both mainstream and enterprise adoption. May Chan CEO [Read More](/case-study/hashpack/) Hedera allows for DeFi to operate without MEV or sandwich attacks because of fair ordering, and it also has low, fixed fees. When you combine these two inherent properties, you end up with benefits for lending protocols that you wouldn’t get on any other network. Brady Gentile Founder [Read More](/case-study/bonzo/) ## Discover why Hedera is the trust layer for DeFi [Start Building](/start-building) [Learn More](/case-studies/)