In a decentralized environment, users don’t need to ask permission from a central authority before engaging in any money market activity. Anyone online can earn interest on their capital and/or borrow funds for their needs seamlessly. The decentralized protocols have an inherent censorship-resistant structure.

In centralized money markets, users’ funds lie in the custody of the central gatekeeper. However, DeFi protocols like money markets are noncustodial, and funds are directly in the control of borrowers and lenders.