With crypto lending, borrowers use their digital assets as collateral, similar to how a house is used as collateral for a mortgage. To get a crypto-backed loan, borrowers collateralize their crypto assets and then pay off the loan over time to get their collateral back.
High returns: One of the most significant advantages of crypto lending is the potential for high returns. Many lending platforms offer APYs upwards of 10%, which is significantly higher than traditional savings accounts.