In traditional finance, a repurchase agreement, also known as a repo loan, is an instrument for raising short-term funds. With a repurchase agreement, financial institutions essentially sell securities from someone else, usually a government, in an overnight transaction and agree to buy them back at a higher price at a later date. The security acts as collateral for the buyer until the seller can pay the buyer back, and the buyer earns interest in return. With DeFi, a comparable process can occur with various digital assets. DeFi applications run on a peer to peer basis thanks to the capabilities of smart contracts and blockchain technology. This allows investors to earn a return on their collateralized assets that are positioned in a DeFi marketplace. They can then leverage this collateral and borrow against it to trade, increase their staking positions, etc. While this strategy may not be for every DeFi user, it does allow those who are interested to replicate an institutional level procedure from the traditional finance world in a fairly simple way.