Multi-token lending refers to a system where users can lend and borrow multiple types of tokens or cryptocurrencies on a single platform. Instead of being limited to just one asset, this approach allows for greater flexibility, enabling users to manage varied crypto assets within the same environment.In practice, users can deposit different tokens as collateral and receive loans in other tokens. This feature provides opportunities for arbitrage, leveraging assets, and managing risks more effectively. For instance, a user can lend Ethereum and borrow stablecoins, allowing them to use borrowed funds for trading or other investments while still earning interest on their lent assets.Multi-token lending platforms often incorporate automated protocols that facilitate the process. These protocols assess collateral values and ensure that loans remain overcollateralized, thereby reducing the risk of defaults. As a result, multi-token lending enhances liquidity in the market and caters to diverse trading strategies, ultimately contributing to the overall efficiency of crypto finance.