Lending & Borrowing

Lending and borrowing in crypto involve users depositing their digital assets to earn interest (lending) or taking out loans by using their crypto as collateral (borrowing). These transactions often happen through decentralized finance (DeFi) protocols, which use smart contracts to automate the process and determine interest rates based on supply and demand. Borrowers gain access to liquidity without selling their assets, while lenders can generate passive income on their holdings.