DeFi Use Case: Lending & Borrowing Lending and borrowing works the same way in Traditional Finance (TradFi) and Decentralized Finance (DeFi), the difference is who holds the keys In TradFi, you go to a bank to make your deposits, they will lend it out, and pay you the interest On the other hand, borrowing requires you to do paperworks, wait a few days or even weeks, and put up property as collateral DeFi is the same minus the bank or middleman: - you supply your crypto to a protocol and earn interest automatically - you can borrow against your own crypto in seconds No banks or credit checks required This one-pager summarizes how the money flows, why you should consider borrowing instead of selling all your crypto, and the risks you need to be aware of