Lending & Borrowing Protocols
DeFi lending protocols let users deposit crypto to earn interest and borrow against their deposits, all governed by smart contracts.
In depth
Loans are over-collateralised: to borrow ₹70 of stablecoins you might lock ₹100 of ETH. If the collateral’s value falls below a threshold, the contract sells it to repay the loan. Interest rates adjust automatically with supply and demand.
Why it matters
Lending markets are the interest-rate backbone of DeFi and a major source of "earn" yields.