#OnChainLendingSurge

How On-Chain Lending Works:

1. Lending:

Users deposit cryptocurrency into a lending protocol.

These deposits earn interest, which is paid by borrowers.

2. Borrowing:

Borrowers lock their collateral in the protocol.

They can then borrow a percentage of the collateral's value in another cryptocurrency.

3. Repayment:

Borrowers repay the loan plus interest to retrieve their collateral.

Failure to repay may result in liquidation of the collateral.