Too Long; Didn't Read
Lending is a relatively recent innovation in the world of cryptocurrency, enabling individuals to obtain capital or earn interest on their digital asset holdings. Lending protocols can be utilized by individuals or businesses, with smart contracts automating the process through a decentralized network rather than an intermediary. At present, DeFi lending protocols generate over $650 million in annual interest; borrowers, meanwhile, have taken out almost $7.5 billion in loans. According to DefiPulse, Compound rules over 50% of lending market and over 60% of borrowing.