In crypto, working capital can refer to the funds used to:
Provide liquidity in decentralized exchanges (DEXs) or liquidity pools.
Facilitate trading, such as buying and selling cryptocurrencies.
Participate in yield farming or staking.
Cover transaction fees and other expenses.
Crypto working capital can be managed through various DeFi protocols, such as:
Liquidity pools
Lending platforms
Stablecoin reserves
Effective management of working capital in crypto is crucial due to market volatility and the need for liquidity.