Lending protocols are one of DeFi’s root primitives. They let users borrow against collateral, supply assets for yield, build leveraged strategies, and issue stable assets. The surface looks simple, but the risk sits in collateral listings, oracle assumptions, liquidation design, governance, liquidity, and rate models.
Reading Path
- Assessing risk in decentralized finance is the core handbook for evaluating lending markets.
- DeFi money markets cookbook turns lending primitives into practical strategies.
- Understanding innovations in money markets covers liquidations, Alchemix-style loans, and future designs.
- ETH exposure or DeFi yields: why choose? introduces leverage through Maker-style borrowing.
- Is this a Lending Protocol Renaissance? covers newer CDP and money market designs.
- The Cycle of Aggregation Spins On, Now with Lending tracks the aggregation layer forming above lending venues.
Core Concepts
- Money market and lending define the primitive.
- Borrowing, LTV, health factor, and liquidation cover user-level risk.
- Price oracle is a core protocol dependency.
- CDP connects lending to stablecoin issuance.
