===== Settlement Layer =====
[[dido:public:ra:xapend:xapend.a_glossary:start| Return to Glossary ]]

The **Settlement Layer**, in [[dido:public:ra:1.2_views:2_tech_views:defilayers| Decentralized Finance (DeFi)]], is also referred to as **Layer 0** because it is the base layer upon which other DeFi transactions are built. It consists of a public [[dido:public:ra:xapend:xapend.a_glossary:b:blockchain|blockchain]] and its native digital currency or [[dido:public:ra:xapend:xapend.a_glossary:c:cryptocurrency|cryptocurrency]]. Transactions occurring on DeFi apps are settled using this currency, which may or may not be traded in public markets. One example of the settlement layer is [[dido:public:ra:xapend:xapend.a_glossary:e:ethereum|Ethereum]] and its native token [[dido:public:ra:xapend:xapend.a_glossary:e:ether|ether (ETH)]], which is traded at crypto exchanges. The settlement layer can also have tokenized versions of assets, such as the U.S. dollar, or [[dido:public:ra:xapend:xapend.a_glossary:t:tokens|tokens]] that are digital representations of real-world assets. For example, a real estate token might represent ownership of a parcel of land.((
Rakesh Sharma,
Investopedia,
24 March 2021,
__Decentralized Finance (DeFi) Definition__,
Accessed 24 May 2021,
[[https://www.investopedia.com/decentralized-finance-defi-5113835]]
))


Source: [[https://www.investopedia.com/decentralized-finance-defi-5113835 ]]


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