Lending and Borrowing

The DeFi concept of lending and borrowing is similar to traditional finance, but in truly decentralized cases, no human intervention is involved or any middlemen.

A borrower will need collateral, and a lender will require an asset to lend. All lending and borrowing activities are conducted through smart contracts, which are executed when a set of rules is satisfied. Before delving into lending in crypto, you should thoroughly research those rules for a specific protocol so you don’t take on more risk than you intended.