ETH lending refers to the process of borrowing and lending Ether (ETH), the native cryptocurrency of the Ethereum blockchain. This practice allows users to earn interest on their ETH by lending it out or access liquidity by borrowing against their holdings.When individuals lend ETH, they provide their assets to a platform or protocol, which then distributes the funds to borrowers. In return, lenders typically receive interest payments over time. Platforms often use smart contracts to automate the lending process, ensuring safe transactions and reducing the need for intermediaries.Borrowing ETH usually involves putting up collateral, often in the form of other cryptocurrencies or tokens, to secure the loan. This helps mitigate the lender’s risk in case the borrower defaults.ETH lending has become popular due to its potential for passive income and flexibility in managing assets. However, participants should be cautious about risks such as market volatility, the possibility of liquidation if collateral values drop, and the reliability of platforms used for lending and borrowing.