Cross-chain lending refers to the ability to lend and borrow assets across different blockchain networks. This process allows users to take advantage of various platforms and their specific assets, increasing liquidity and opportunities for earning interest.In traditional lending, assets are usually confined to a single network. Cross-chain lending breaks down these barriers, enabling users to utilize their tokens from one blockchain as collateral for loans on another. This means a user could borrow tokens on, say, Ethereum, while securing the loan with Bitcoin held on the Bitcoin network.To facilitate cross-chain lending, decentralized protocols and bridges are often used. These tools enable seamless transfers and interactions between different blockchains. By doing so, users can access better lending rates or diversified investment strategies.Cross-chain lending can also enhance liquidity in the market, as it encourages borrowing and lending across a wider array of assets. Overall, this approach offers more flexibility and potentially higher returns for users looking to optimize their asset holdings.