YIELDS & RETURNS

Lending (DeFi Lending)

Definition

Lending in DeFi allows users to lend their crypto assets to earn interest. Smart contracts automatically manage the lending process, eliminating the need for traditional intermediaries.

Example

💡 Example

You can lend USDC on Aave to earn interest paid by borrowers who need liquidity.

Risks to Consider

⚠️ Risks
  • Smart contract risk
  • Bad debt
  • Interest rate volatility

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