Crypto Lending Guide

Crypto lending lets you earn interest by lending your digital assets to borrowers through centralised or decentralised platforms. Understand the risks, reward mechanics, and due diligence needed. Before depositing, explore the lessons from the 2022 lending crisis so you can avoid the mistakes that cost billions. If you're new to DeFi, start with our guide to Aave, Compound, and other protocols for a solid technical foundation. For a lower-risk entry point, consider our stablecoin yield strategies that minimise price volatility.

Decentralised lending protocols let you supply and borrow assets without intermediaries. Learn how Aave, Compound, and other protocols work, including liquidation mechanics and yield dynamics. Understanding protocol risk is critical — review our breakdown of DeFi lending risks including oracle attacks and flash loans before committing significant capital. For yield without price exposure, pair this knowledge with stablecoin yield strategies. Keep your assets safe by following best practices in our crypto security guide and storing funds in wallets covered by our wallet guides.

Lending stablecoins (USDC, USDT, DAI) provides crypto yield without the price volatility of lending BTC or ETH. Learn the best platforms, risk tiers, and how to maximise safe yield. Use our compound interest calculator to model how stablecoin yields grow over time with reinvestment. Be sure to understand the historical risks of crypto lending platforms — unsustainable rates were a warning sign before every major collapse. You may also want to explore DeFi airdrops as many lending protocols reward active suppliers with token distributions.

The 2022 crypto lending crisis destroyed billions. Learn from the failures of Celsius, BlockFi, Voyager, and Hodlnaut to protect yourself in the future. Understanding how DeFi lending protocols differ from CeFi platforms is key to evaluating where your funds are actually going. Stay informed on the evolving crypto regulation landscape that emerged in response to these failures. For broader protection strategies, review our crypto security guide covering custody, platform due diligence, and proof-of-reserves verification.

Understand the unique risks of DeFi lending and liquidity provision. Impermanent loss, smart contract exploits, oracle manipulation, and flash loan attacks explained. These advanced risks make due diligence essential — start with crypto lending fundamentals if you're still building your knowledge base. Protect your wallets and approvals by following our security best practices, and check our crypto glossary for definitions of terms like TVL, oracle, and liquidation ratio.