Decentralized lending protocols are platforms that allow users to borrow and lend cryptocurrencies without a central authority. These systems operate on blockchain technology, promoting peer-to-peer transactions.Lenders can offer their crypto assets to borrowers in exchange for interest. The terms of these loans, including interest rates and durations, are typically governed by smart contracts—automated agreements that execute once predefined conditions are met. This process eliminates intermediaries, leading to greater efficiency and often lower costs.Borrowers, on the other hand, must usually provide collateral to secure their loans. This collateral acts as a safeguard for lenders, compensating them if the borrower fails to repay.Users also enjoy greater access to financial services, often with fewer barriers compared to traditional banking methods. Decentralized lending protocols promote transparency, as all transactions are recorded on the blockchain, allowing for easy verification.Overall, these platforms foster a more inclusive financial ecosystem by enabling direct interactions between users while minimizing reliance on centralized institutions.