#OnChainLendingSurge On-chain financing, also known as decentralized or crypto lending, is a form of lending that is applied for and obtained on the blockchain. In other words, rather than going through a traditional financial institution, businesses take out loans directly from crypto investors. To do this, they deposit their crypto assets as collateral and present their transaction history to lenders.

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On-chain financing is accessible to all Web3 projects that have been excluded from the traditional banking system. This type of lending also offers several advantages to borrowers, including the ability to directly access borrowers' transaction history, etc. Similarly, businesses can use their crypto assets as collateral, regardless of their borrowing capacity.

Additionally, on-chain lending platforms generally require borrowers to deposit collateral greater than the loan amount, which reduces the risk of default and protects investors (or lenders).

Finally, on-chain financing platforms are usually based on fully transparent blockchains. This way, investors can see where their funds are going and how they are being used.