# Protocol

Decentralized Finance (DeFi) is based on the peer-to-peer concept that removes intermediaries from the system. By relying on peer-to-peer philosophy and self-executing “smart contracts” on the blockchain network, DeFi democratizes finance and replaces traditional centralized institutions such as banks, brokerages, and NBFCs (Non-Banking Financial Companies).

Contributors of the protocol can communicate with our smart contracts using their wallets to contribute to a blockchain, claim rewards, enable generative wealth incentives and participate in on-chain governance. Contributors with voting rights can also vote to enable algorithmic trading strategies, integrate the protocol with yield programs and so forth. To increase the treasury of the protocol, this is a huge benefit for the contributors.

The Cepheus protocol is managed by people around the world who hold its governance token. Through a proven system, inspired by Compound, users make on-chain decisions to improve the protocol over time.

The protocol is built modularly; each component has its purpose and contributes to a sustainable protocol. This is how the protocol would look like from a high-level overview:

# Fees

The fees generated from the interface will be used to increase the rewards pools. Therefore, each contributor receives more rewards in a sustainable way.