Cryptocurrency-based

Describing something whose foundation, operation, or value is derived from or directly linked to the use, trade, or application of cryptocurrencies. This encompasses a broad spectrum, including financial products, digital platforms, payment systems, and economic models. It signifies a reliance on the decentralized, cryptographic, and often blockchain-driven nature of cryptocurrencies. The term emphasizes the central role cryptocurrency plays in the functioning, structure, or economic viability of the subject being described. This can involve direct use of cryptocurrencies for transactions, or utilizing their underlying technology for alternative financial and economic constructs. The level of dependence can vary greatly, from purely facilitating crypto transactions to being entirely dependent on the crypto ecosystem.

Cryptocurrency-based meaning with examples

• The new platform is built on a cryptocurrency-based infrastructure, allowing users to manage digital assets and participate in decentralized finance (DeFi) activities. Transactions are faster and cheaper than traditional methods. Its smart contracts enable automated lending and borrowing. Users can also stake tokens for rewards and earn higher yields within the platform’s ecosystem.
• Many emerging lending services are cryptocurrency-based, offering loans collateralized by cryptocurrencies. These loans provide access to capital without selling holdings. Interest rates are often variable and can fluctuate with market volatility. Borrowers can access liquidity for various needs. This financial innovation allows crypto holders to leverage their assets without incurring taxable events.
• The company’s rewards program utilizes a cryptocurrency-based system, awarding users with digital tokens for various actions like loyalty or engaging with the platform. These tokens can then be used for discounts on products or services, or traded for other cryptocurrencies. This strategy is intended to enhance customer engagement. This structure incentivizes participation in the company's ecosystem.
• Investment firms are increasingly developing cryptocurrency-based funds and investment vehicles that hold a portfolio of digital currencies. These funds allow investors to gain exposure to the crypto market without directly purchasing or managing digital assets themselves. This can improve diversification, potentially offering opportunities for higher returns. This is a more accessible entry point.