# DEFI **What it is:** The DEFI pillar unlocks the financial potential of tokenized assets by providing a suite of decentralized finance (DeFi) services. This pillar enables users to access liquidity, earn yield, and participate in a vibrant and growing financial ecosystem, all within the RWA.io platform. Key features include lending and borrowing protocols, a multi-asset collateral system, and institutional-grade lending vaults. **Why it is important:** One of the primary benefits of tokenization is the ability to unlock the liquidity of traditionally illiquid assets. The DEFI pillar makes this a reality by providing a range of services that allow users to put their tokenized assets to work. The main advantages are: * Increased Liquidity: By enabling users to borrow against their tokenized assets, we provide a much-needed source of liquidity for the RWA market. * New Yield Opportunities: The DEFI pillar creates new opportunities for investors to earn yield on their assets, both through lending and by providing liquidity to the ecosystem. * Greater Capital Efficiency: Our DeFi services allow for more efficient allocation of capital, enabling users to maximize the return on their assets. **How it works:** The DEFI pillar is built on a foundation of secure and audited smart contracts that automate the process of lending, borrowing, and yield generation. The key components are: * Lending and Borrowing Protocols: A set of smart contracts that allow users to lend and borrow assets in a decentralized and non-custodial manner. * Multi-Asset Collateral System: A flexible collateral system that supports a diverse range of RWA tokens, allowing users to borrow against a variety of assets. * Automated Risk Management: Our protocols include built-in risk management features, such as over-collateralization and automated liquidations, to protect lenders from default. * Institutional Lending Vaults: For our institutional clients, we offer dedicated lending vaults with enhanced security and compliance features. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.rwa.io/documentation/ecosystem/defi.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.