An investment protocol refers to a set of rules and guidelines that govern how funds are managed and deployed within a specific cryptocurrency project or platform. These protocols are often embedded in smart contracts, ensuring that investment processes are automated and transparent.Investment protocols can facilitate various activities, such as staking, lending, or liquidity provision. Users who participate typically earn rewards, like interest or returns, based on the amount they invest and the duration of their investment. These protocols aim to create an ecosystem where participants can confidently engage with their assets while minimizing risks. They often include mechanisms for governance, allowing stakeholders to influence decisions about the protocol’s development and operations. By standardizing investment practices, these protocols help users navigate the complex landscape of asset management in cryptocurrencies, making it easier to understand potential returns and associated risks.