# Money Market

> A market for short-term borrowing and lending of low-risk assets. In crypto, often a stablecoin lending pool.

Canonical URL: https://fudfomo.co/glossary/money-market
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

In traditional finance, a money market deals in very short-term, low-risk lending and borrowing. In crypto, the term usually points at lending protocols for stablecoins and major assets, where rates reset constantly based on usage.

Crypto money markets do not have the same safeguards as their bank equivalents. Yields can be higher, but so can the risks attached to the underlying tokens, the contracts, and the price oracles in use.

## Related terms

- [Lending Protocol](https://fudfomo.co/glossary/lending-protocol): A DeFi app that lets users deposit crypto to earn interest and others borrow against collateral.
- [DeFi](https://fudfomo.co/glossary/defi): Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.
- [Stablecoin](https://fudfomo.co/glossary/stablecoin): A token designed to hold the same value as a regular currency, usually the US dollar.
- [Collateral](https://fudfomo.co/glossary/collateral): An asset you lock up to back a loan. If the loan is not repaid, the collateral can be taken.

## See the full catalogue

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