What are the risks of DeFi lending?

DeFi lending is largely safe. However, due to the market’s volatility, the lender might suffer losses when the loan isn’t paid back on time. Impermanent loss is another risk that is associated with providing funds to liquidity pools.

What are DeFi lending protocols?

DeFi lending protocols or DeFi lending platforms, allow users to get a DeFi loan. The loan can be in any of the available cryptocurrencies on the platform. Bear in mind that the borrower must deposit a collateral, which is usually around 150% to 200% of the loan value.

How do I get a loan from DeFi?

Anyone can get a DeFi loan, using a DeFi lending platform such as Aave or Compound. The borrower will need to deposit a collateral, which is another cryptocurrency, to get a DeFi loan.