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Crypto lending has taken off in a big way over the past 12 months, with both centralized and decentralized platforms giving users the opportunity to borrow and lend. The arrival of lending in crypto provides yet another use case for blockchain technology, particularly the smart contracts favored by DeFi protocols, while also drawing tremendous liquidity into the market.
The ability to obtain cash loans backed by crypto, crypto loans backed by real-world assets, such as property, or loans in your choice of asset backed by – wait for it – nothing at all is undoubtedly a cause for celebration. And while unsecured borrowing might sound like the embodiment of risk, it should be noted that loans aren’t automatically dispensed to all and sundry – the eligibility of borrowers depends on factors such as income, savings or credit history.
For the most part, crypto lending protocols are every bit as judicious as banks when it comes