Defi lending is a type of crypto loan executed in a trustless manner (without intermediaries). Defi lending platforms allow users to enlist their crypto coins on the platform for lending purposes. A borrower can take a loan directly through the decentralized platform (a P2P lending).
DeFi lending is all about offering crypto loans on a decentralized platform. Among all the decentralized applications (Dapps), DeFi (De-centralized Finance) has the highest lending growth rate globally. It is one of the prominent contributors utilized for locking crypto assets.
The popularity of the DeFi applications has escalated to a considerable margin. This has influenced the growth of DeFi lending. DeFi lending is one of the most spectacularly upsurging parts of the cryptocurrency ecosystem. These types of loans are now allowing crypto holders to lend their assets and earn lucrative interests.
The main advantages of being a DeFI lender are the attractive rates of return, often 5-30% annualized yield compared to around 1% in fiat currencies. This allows crypto assets to earn a passive income on their holdings without liquidating.
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