Crypto Lending: How It Works and What You Need to Know

When you put your crypto lending, a system where users lend their cryptocurrency to others in exchange for interest payments. Also known as DeFi lending, it lets you earn passive income without selling your coins. Unlike banks, there’s no middleman—just smart contracts on blockchains like Ethereum or Solana that automatically handle loans, collateral, and payouts.

Crypto lending works two ways: you can lend your coins to earn interest, or borrow cash by locking up your crypto as collateral. Platforms like Aave or Compound let you deposit ETH or USDC and start earning daily returns, often higher than traditional savings accounts. But here’s the catch—your collateral can get liquidated if prices drop too fast. And not all platforms are safe. Some, like the ones mentioned in posts about failed airdrops or dead tokens, vanish overnight with users’ funds. That’s why checking for audits, liquidity, and user history matters more than the APY number.

Real users aren’t just chasing high yields—they’re using crypto lending to avoid selling assets during market dips, fund new investments, or even pay bills without touching their Bitcoin. It’s not magic. It’s math, risk, and smart choices. You’ll find posts here that break down real cases: what happened with CoinWind’s COW token, why some airdrops turned into ghost projects, and how platforms like zkLink or PartySwap are changing how liquidity moves across chains. Some of these stories are cautionary tales. Others show what’s possible when things work right. What you’ll see below isn’t just a list of articles—it’s a map of who’s still standing, who got burned, and how to avoid the same mistakes.