🧠Topic: What is lending in crypto, how borrowing works, and how to earn on it safely

🏦 What is crypto-lending?
This is the process where you lend your cryptocurrencies through decentralized protocols (e.g., Aave, Compound) and earn interest.

On the other hand, you can also take a loan by using crypto as collateral.

🔁 How does it work?

You deposit assets (e.g., USDT) into the lending protocol

The protocol lends these assets to other users against collateral

You receive interest (in tokens or in the same asset)

⚠️ Borrowing only works with over-collateralization:
→ to borrow $100, you need to deposit $150+ as collateral

💸 How to earn on lending:
🔹 Passive income: just deposit and earn interest
🔹 Platforms with rewards: Aave, Venus, JustLend
🔹 Use in strategies: take loans against collateral$ETH → swap for stablecoins → farm

⚠️ Main risks:
🔻 Liquidation: if the price of your collateral falls → assets may be forcibly sold
🔻 Volatility: the asset's price affects the safety of the loan
🔻 Smart contract risk: vulnerabilities in the code
🔻 Interest rate risk: yields may decrease

🔒 How to reduce risks:
✅ Don't take loans against volatile assets at peak prices
✅ Set a safe LTV level (e.g., 50–60%)
✅ Use reliable platforms with audits
✅ Monitor the price and state of collateral through apps (Zapper, DeBank)

📊 TOP platforms for lending:

#AAVE — reliable and multi-chain

#Compound — one of the first

#Venus — $BNB Chain

JustLend — TRON

📌 Conclusion:
Crypto-lending is a #DeFi alternative to bank deposits and loans.
The yields are higher, but there are also risks. It is necessary to understand the mechanics and manage collateral.

📖 In the next issue, I will explain:@Cryptoland_88
What is staking, how it differs from farming, and where to stake wisely and profitably.

👆This article is for informational purposes only and is not investment advice. Thank you for subscriptions, likes, and comments!