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DeFi Lending Protocol

Definition

A DeFi lending protocol is a decentralized application that enables users to borrow and lend digital assets without traditional financial intermediaries. These protocols operate on blockchain networks, using smart contracts to manage loans, collateral, and interest rates autonomously. Users can supply assets to earn interest or borrow assets by providing collateral, all governed by transparent, programmatic rules. They represent a fundamental component of the broader decentralized finance ecosystem.