#OnChainLendingSurge

On-chain lending refers to lending platforms that operate on a blockchain network, utilizing smart contracts to facilitate lending and borrowing. Here are some key aspects of on-chain lending:

Benefits

1. *Decentralized*: On-chain lending platforms are decentralized, meaning that there's no central authority controlling the flow of funds.

2. *Transparency*: All transactions are recorded on the blockchain, providing a transparent and tamper-proof record.

3. *Security*: Smart contracts ensure that lending and borrowing terms are enforced automatically.

4. *Accessibility*: On-chain lending platforms can provide access to credit for underserved or marginalized communities.

How it works

1. *Borrowers*: Create a loan request on the platform, specifying the amount and terms.

2. *Lenders*: Choose to lend funds to borrowers, earning interest on their investment.

3. *Smart contracts*: Automate the lending process, ensuring that terms are enforced and funds are transferred securely.

4. *Collateralization*: Some platforms require borrowers to provide collateral, which is held in escrow until the loan is repaid.