> For the complete documentation index, see [llms.txt](https://weco-protocol.gitbook.io/weco-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://weco-protocol.gitbook.io/weco-protocol/basics/defi-modules-and-financial-services.md).

# DeFi Modules & Financial Services

#### Deposit & Loan Protocol

* Collateralization: Users can borrow stablecoins or other tokens against staked RWA NFTs, with AI adjusting loan-to-value (LTV) ratios based on real-time valuations.
* Dynamic Interest Rates: Rate adjustments informed by usage metrics, liquidity conditions, and predictive modeling.

#### AMM & Swaps

* Multi-Asset Support: Provide liquidity pairs involving WECO, stablecoins (USDC/USDT), fractional RWA tokens, and LSD.
* Yield Optimization: AI detects arbitrage or yield-farming opportunities across integrated protocols, automatically compounding user gains.

#### Liquid Staking & Re-Staking

* Liquid Staking: Users stake WECO or RWA tokens to secure the network, receiving LSD tokens that can be further deployed in DeFi for extra returns.
* Re-Staking: Automated re-staking strategies optimize user yields by moving staked assets between different pools or yield farms as conditions evolve.

#### Insurance & Risk Mitigation

* Insurance Pools: Community-managed insurance funds cover potential losses due to contract hacks or forced liquidation events.
* AI-Driven Risk Engine: Continuously monitors asset valuations, usage data, and market volatility, triggering protective measures (e.g., halting trades in black swan scenarios).