On-chain lending is a decentralized lending system that operates on the blockchain, allowing users to lend or borrow digital assets without traditional intermediaries like banks. It works through smart contracts, which automate and secure transactions, offering efficiency, transparency, and global access.
Generally, these loans require over-collateralization, where borrowers must deposit more value than they request to ensure compliance. Platforms like Aave, Compound, or MakerDAO lead this market, attracting both small users and large investors due to their attractive yields and the possibility of generating passive income.
The #OnChainLendingSurge is transforming finance, solidifying itself as one of the most important innovations in the DeFi ecosystem.
Crypto Madam ✨