Some key terms include:

• Lending: The act of supplying assets to a DeFi lending protocol to earn interest.
• Borrowing: Taking out a loan by locking up crypto as collateral to access liquidity.
• Loan-to-Value (LTV) Ratio: The percentage of borrowed funds relative to deposited collateral.
• Utilization Rate: The percentage of supplied assets that have been borrowed, directly influencing interest rates—higher utilization increases borrowing costs while lower utilization reduces them.
• Liquidation: The automatic sale of collateral when a borrower’s LTV ratio exceeds the liquidation threshold.

To learn more about Lending & Borrowing, visit:

• Lending & Borrowing Overview
• How Lending & Borrowing Works
• Interest Rates
• Liquidations
• Flash Loans
• Lending & Borrowing Key Considerations
• Lending & Borrowing Projects