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How DeFi Lending Pools Work |

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Lending Pools are one of hallmarks of Decentralized Finance.

We have explained them before, and they have changed since then. They have also greatly increased their adoption.

Lending pool Dapps and Protocols are going to be increasingly important in DeFi. They were an obvious first step to gain adoption, and started with great returns.

The protocols will be necessary to create a bank-type atmosphere for the Crypto and DeFi world to safely store money that can accrue interest, and have the ability to lend that money out…all without the need for the traditional bank rails.

We discuss Compound, dY/dX, Aave, and BZX, and acknowledge there are others providing this service.

In addition, we know there are similar applications being built on other chains, and they will take from the work started on Ethereum.

The creation and evolution of the Decentralized Lending Pools is such a vital, basic part of DeFi, and needs to be clearly understood to move on to other lending and DeFI applications.

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