lending protocols

Lending protocols are systems within the cryptocurrency space that connect people wanting to borrow or lend digital assets without traditional banks. Borrowers provide collateral to secure a loan, and lenders earn interest by offering their assets. These protocols use smart contracts—automated agreements—on blockchain technology to ensure transparency, security, and automatic execution of terms. This setup allows for peer-to-peer lending, often with lower fees and broader access, making borrowing and lending more efficient and accessible in the digital economy.