Lending Platform

Definition ∞ A lending platform provides services that permit users to borrow or lend digital assets, often without the need for traditional financial intermediaries. These platforms typically operate on blockchain networks, utilizing smart contracts to automate loan agreements, collateral management, and interest accrual. Participants can earn yield on their deposited assets or access capital by providing collateral. The terms of these arrangements are transparently recorded on the ledger.
Context ∞ Lending platforms are a significant component of the decentralized finance (DeFi) landscape, frequently appearing in crypto news regarding yield opportunities, liquidation events, and security audits. The risks associated with these platforms, such as smart contract vulnerabilities or fluctuating collateral values, are regularly discussed. Regulatory bodies are increasingly scrutinizing these platforms, seeking to apply existing financial regulations or develop new ones specific to digital asset lending.