Definition ∞ Multi-chain lending refers to providing or obtaining loans across different blockchain networks, rather than being limited to a single chain. This enables users to utilize assets held on one blockchain as collateral for loans on another, or to access liquidity pools distributed across various networks. It addresses the restrictions of isolated blockchain ecosystems, broadening the scope and efficiency of decentralized finance. This capability increases capital utility for users.
Context ∞ The current conversation around multi-chain lending highlights its potential to significantly enhance capital efficiency and user access within decentralized finance. Debates frequently concern the security of cross-chain bridges and the complexities of managing collateral across disparate network environments. Future advancements will likely involve more robust interoperability protocols and standardized risk assessment models for assets on different chains. This will contribute to a more interconnected and liquid digital lending landscape.
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