@godferyalbert
DeFi lending (Aave, Compound) boosts liquidity by letting users borrow/lend crypto—2024’s DeFi lending volume hit $120B. It increases asset utility but risks: liquidation cascades (e.g., 2022’s Terra crash). Investors should monitor loan-to-value (LTV) ratios and liquidation volumes. High LTVs signal higher risk; lower ratios mean more stable liquidity.
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