Crypto lending is a process where cryptocurrency holders lend their assets to borrowers in exchange for interest payments. This is a relatively new form of lending, but it has quickly become popular due to its high interest rates and ease of use.

Crypto lending platforms act as intermediaries between lenders and borrowers. Lenders deposit their cryptocurrency into a platform's interest-bearing account, and borrowers can then take out loans using cryptocurrency as collateral. The platform sets the interest rates for both lending and borrowing, and it typically takes a small fee on each loan.

There are two main types of crypto lending platforms: centralized and decentralized. Centralized platforms are similar to traditional banks in that they hold users' funds and manage the lending process. Decentralized platforms, on the other hand, are peer-to-peer platforms that do not hold users' funds. Instead, they use smart contracts to facilitate lending and borrowing transactions.