How do smart contracts enable automated lending and borrowing in the DeFi space?

1 answers

• May 02, 2022 · 3 years ago
  In the DeFi space, smart contracts are the key to automated lending and borrowing. These contracts are programmed to execute lending and borrowing transactions automatically based on predefined conditions. This eliminates the need for intermediaries and allows for faster and more efficient lending processes. However, it's important to approach automated lending and borrowing with caution. While smart contracts are designed to be secure, they are not foolproof. Users should thoroughly review the terms and conditions of any lending or borrowing platform and ensure they understand the risks involved before participating. It's also important to diversify investments and not rely solely on one platform or protocol to mitigate potential risks.
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