Description: The interest rate is the percentage charged on a loan or paid on deposits, and it is a fundamental concept in the financial realm. It represents the cost of money over time, expressed as a percentage of the capital borrowed or deposited. In the context of decentralized finance (DeFi), the interest rate can vary significantly depending on the supply and demand for digital assets. Smart contracts, which are self-executing programs on blockchain platforms, enable the automation of interest rate management, facilitating loans and savings without intermediaries. Online marketplaces and financial platforms also use interest rates to offer financing options, allowing merchants and consumers to acquire goods or improve their infrastructure. In summary, the interest rate is a key element that influences various financial transactions, affecting both borrowers and savers in multiple contexts.
