DeFi & Protocols
Also: money market
Lending Protocol
A DeFi application enabling users to borrow against crypto collateral or earn yield by supplying assets.
Lending protocols are smart contract systems that facilitate over-collateralized loans without intermediaries. Borrowers deposit collateral (e.g., ETH) and borrow against it (e.g., USDC), paying variable interest. Suppliers earn yield from borrower interest. Positions are automatically liquidated when collateral value drops below the required threshold. Aave and Compound are the largest; their utilization rates and liquidation levels are closely watched market signals.
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