Today I'm going to explain how Defi lending and borrowing works.

The first thing you need to know is what Defi is.

Defi is short for decentralized finance.

It's a new way of doing financial transactions that don't require a bank or other traditional financial institution.

Instead, Defi transactions are done on the blockchain, which is a decentralized network of computers that anyone can access and use.

So, how do Defi lending and borrowing work?

Basically, you can think of it like this: there are people who have money that they're willing to lend out, and there are people who need money and are willing to borrow it.

The lending and borrowing are done through smart contracts, which are like digital agreements that are stored on the blockchain.

The contracts specify the terms of the loan, such as how much money is being lent, the interest rate, and when the loan needs to be repaid.

Once the contract is created, it can't be changed, so both the borrower and lender know exactly what they're agreeing to.

To find someone to lend or borrow from, you can use a Defi lending platform.

These platforms match borrowers and lenders and help facilitate the loan process.

Some popular Defi lending platforms include AAVE, MakerDAO, Compound, and Dharma.

If you're thinking about taking out a loan, be sure to do your research and compare different lending platforms to find the best terms for you.

There are some important DeFi terms that you need to understand

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