#OnChainLendingSurge

Decentralized loans are financial transactions that are implemented through decentralized finance (DeFi) platforms running on the blockchain, mainly Ethereum. Their main features are:

1. No intermediaries: Loans are issued without the participation of banks or financial institutions, through smart contracts.

2. Collateral: Loans usually require collateral in the form of cryptocurrency that exceeds the loan amount (overcollateralization).

3. Transparency and automation: Loan terms are recorded in smart contracts that are executed automatically.

4. Openness: Anyone with a crypto wallet can participate, regardless of their place of residence or credit history.

5. Risks: Fluctuations in cryptocurrency prices can affect loan collateral, which can lead to the liquidation of collateral.

Popular platforms: Aave, Compound, MakerDAO.

This approach provides financial inclusion and flexibility, but requires an understanding of risks and technologies.