ERC-20 defines the technical standard used to create fungible tokens on Ethereum.

This standard defines a set of rules that a token must follow in order to be compatible with the Ethereum network. This includes rules for how the token can be transferred, how it can be stored, and how it can be managed.

ERC-20 tokens are popular in the DeFi space because they are easy to use and widely supported by different decentralized exchanges and DeFi platforms.

In addition, the ERC-20 standard allows for the creation of decentralized applications (dApps) that can interact with the token, which can enable a wide range of innovative DeFi use cases.

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