The text provides an overview of Decentralized Finance (DeFi) lending, highlighting its transformative potential compared to traditional financial services by leveraging blockchain technology to enhance transparency, security, and community governance. DeFi lending platforms, which simulate traditional borrowing and lending services but operate without intermediaries, have gained popularity, particularly with digital currencies like USDC as a favored asset. USDC, a stablecoin pegged to the US dollar and backed by regulated institutions, is prominent in DeFi due to its stability, regulatory compliance, and chain-agnostic nature, making it a preferred choice for both lenders and borrowers. The text notes that DeFi lending involves overcollateralized loans due to the volatility of cryptocurrencies and the absence of credit scores. Additionally, DeFi protocols offer benefits such as self-custody, reduced costs, and increased financial inclusion, allowing lenders to earn higher interest rates and borrowers to access funds more easily compared to traditional finance. The demand and supply dynamics in DeFi lending impact interest rates, with borrowed cryptocurrencies typically used in various blockchain ecosystem activities, although they often carry higher interest rates than traditional loans.