DeFi lending and borrowing platforms are the places where crypto investors can invest their cryptos to provide liquidity to liquidity pools. This offers high-interest rates for investors. While borrowers can use assets like NFTs to borrow cryptos on the platform.
With a DeFi lending protocol, an individual can lend cryptos to ones who need them without any third party involvement. Smart contracts will initiate the lending process once the individual meets the requirements of the platform to avail a loan. Users can have swift transactions, transparency and accountability in the lending process.
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