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  1. Home
  2. /Glossary
  3. /Lending Protocol
Back to Glossary
defi

Lending Protocol

A DeFi application that lets you lend your crypto to earn interest or borrow against your holdings.

Definition

A DeFi application that lets you lend your crypto to earn interest or borrow against your holdings. Aave and Compound are the biggest ones. Interest rates adjust automatically based on supply and demand, and borrowers must always keep more collateral than they borrow to avoid liquidation.

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Related Terms

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

Collateral

Assets you put up as security when borrowing.

Liquidation

When a borrower's collateral is forcibly sold because their position became too risky.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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