Crypto lending is the process of lending and borrowing cryptocurrencies with a fee attached to them.
Usually, the lender decides to offer their idle funds as a loan to a borrower that pays interest
In some cases, the borrower is expected to provide a type of collateral. Crypto lending occurs in an exchange or a DeFi lending protocol designed for the very same purpose
The collateral earmarked for the process must always be above a particular value, or the asset is liquidated
Automated lending process, Smart contracts automate the lending and borrowing process, reducing the chances of human errors.
Seamless access to funds, As long as users can offer collateral, they are given the funds in a collateralized loan. In the case of flash loans, once they return the funds in the transaction, they can access capital
Stream of income, People can offer their idle funds to lending protocols and earn APY at the end of a period.
Crypto lending risks, Crypto lending may have its perks, but it still possesses some disadvantages.