There are certain DeFi "building blocks" that create a software stack, with every layer building upon another. These layers work together to create DeFi and its related applications that serve users in a variety of different ways. If one layer is off, so are the other layers.  The five layers that make up DeFi include:   The settlement layer, which is the foundational layer of the blockchain and its specific native asset. For example, Ethereum is the network on the blockchain and ether is the native currency on that blockchain. This layer provides security and a set of rules to follow.  The asset layer, which refers to all the tokens and digital assets that are native to the particular blockchain. The protocol layer, which sets the protocols or guidelines for smart contracts.  The application layer, which brings the protocols to life with a user interface that is consumer-facing.  The aggregation layer, which consists of aggregators that connect the various dApps and protocols which make up the foundation for borrowing, lending on and other financial services.