Most people are aware of the concept of borrowing and lending, whether in the form of mortgages, student loans, so on. It is, without a doubt, one of the most important parts of the financial system. Traditionally, financial organizations such as banks or peer-to-peer lenders eased the process of connecting borrowers and lenders by controlling access as well as borrowing lending rates. When compared to TradFi, DeFi borrowing and lending offers improvements in efficiency, accessibility, and transparency. On <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>, we'll look at the best DeFi lending platforms in 2022.<img src="https://cdn.builder.news/news/11ed291376aa3aaea8e6023f659fee92.jpg" alt="8 best lending platforms" title="8 best lending platforms" width="600" height="400"><h2>What is lending and borrowing in DeFi?</h2>In the DeFi ecosystem, lending and borrowing, for example, is a popular alternatives. It not only fills the TradFi system's financial accessibility deficit, but also serves as a financial service enabler. DeFi financing systems, in particular, are assisting in the adoption of blockchain and cryptocurrencies.DeFi allows investors to participate in lending platforms by contributing to a loan liquidity pool as a long-term investment. Following that, the investors receive both capital and interest through the decentralized network.<h2>Why lending in DeFi platforms are becoming more popular?</h2>Regardless of which platform users dive in, all DeFi lending platforms are at their best to deliver: Permissionless-ness, transparency, and immutability to lenders and borrowers.Besides, it's no secret that some cryptocurrencies are incredibly volatile, making them vulnerable to deflation. Investing in a lending platform can help investors avoid deflation. To do this, the loan platform uses a number of tactics to generate active returns on all investments placed in its liquidity pool. Unlike TradFi, the DeFi ecosystem's lending and borrowing processes are speedier. The lack of intermediaries, as well as the fact that the entire process is automated with smart contracts, are the reasons behind this.&gt;&gt;&gt; Read more:&nbsp;<a href="https://www.builder.news/crypto-insights/general-knowledge-about-defi-1yU8n" alt="General knowledge about Decentralized Finance" title="General knowledge about Decentralized Finance" target="_blank" rel="" class="">General knowledge about Decentralized Finance</a>.<h2>Best DeFi lending platforms in 2022</h2><h3>Aave - Most popular DeFi lending platform</h3><h4>Overview</h4><ul><li>APY: TBU</li><li>Fees: Yes</li><li>Withdrawal limits: No</li></ul>Aave, which is based on the Ethereum network and runs as an open-source, non-custodial protocol, is perhaps the fastest growing DeFi lending platform. Like most lending platforms, the network uses a dual token architecture which is $LEND and $aToken. The former serves as the network's native asset and the latter performs as an ERC-20 token that is issued to lenders as interest.<img src="https://cdn.builder.news/news/11ece7e5a50a4510a8e6023f659fee92.jpg" alt="Aave best DeFi Lending platform" title="Aave Liquidity Protocol" width="600" height="265">Unlike other DeFi lending platforms, Aave uses a hybrid lending structure that allows users to take out both collateralized and uncollateralized loans. Additional lending options, such as "rate switching," "Flash Loan," and unique collateral kinds, are also available through the site.<h4>Supported assets</h4><div class="pr-block-special">TrueUSD (TUSD), USD Coin (USDC), Tether (USDT), Wrapped BTC (WBTC), 0x (ZRX), Synthetix USD (SUSD), Kyber Network (KNC), Aave (AAVE), ChainLink (LINK), Decentraland (MANA), Maker (MKR), Basic Attention Token (BAT), Dai (DAI), Ethereum (ETH), and Augur (REP).</div><h3>Compound - Best no-withdrawal-limit DeFi lending platform</h3><h4>Overview</h4><ul><li>APY: Up to 3.41%</li><li>Fees: Yes</li><li>Withdrawal limits: No</li></ul>Compound is an autonomous and open-source protocol for developers based on the Ethereum blockchain. The platform, on the other hand, serves as an algorithmically efficient money market for investors. In contrast to conventional loan platforms, Compound takes a unique approach to collateralization. The network, in particular, allows any asset put in its liquidity pool to be tokenized. When a user deposits ETH or other accepted crypto assets, for example, the user receives cToken, which also serves as the network's native asset.<img src="https://cdn.builder.news/news/11ece7e5a50a533da8e6023f659fee92.jpg" alt="Compound best DeFi Lending platform" title="Compound" width="600" height="331">&gt;&gt;&gt; Related article:&nbsp;<a href="https://www.builder.news/crypto-insights/idle-money-for-defi-lending-and-staking-what-you-need-to-know" alt="Idle money for DeFi lending and staking - What you need to know" title="Idle money for DeFi lending and staking - What you need to know" target="_blank" rel="" class="">Idle money for DeFi lending and staking - What you need to know</a>.This cToken, also known as the COMP token, can be used as collateral when applying for a loan, staking, or trading on the network's marketplace. Compound now supports up to nine Ethereum-based crypto currencies, including ETH, DAI, BAT, WBTC, ZRX, USDC and USDT. The platform expands.Credible organizations such as Open Zeppelin and Trail of Bits have conducted a number of security audits on Compound, all of which have been publicly disclosed.<h4>Supported assets:</h4><div class="pr-block-special">Aave Token (AAVE), Basic Attention Token (BAT), Compound Governance Token (COMP), DAI (DAI), Ethereum (ETH), Fei USD (FEI), ChainLink Token (LINK), Maker (MKR), SushiToken (SUSHI), TrueUSD (TUSD), UniSwap (UNI), USD Coin (USDC), Pax Dollar (USDP), Tether (USDT), Wrapped BTC (WBTC), Yearn.finance (YFI), and 0x (ZRX).</div><h3>BlockFi - Best DeFi lending rates</h3><h4>Overview</h4><ul><li>APY: Up to 15%</li><li>Fees: No</li><li>Withdrawal limits: Limited free withdrawals from interest accounts</li></ul>The next best DeFi lending platform on this list is BlockFi. With a BlockFi Interest Account, users can earn between 2% and 15% compounding interest on their cryptocurrency holdings. The account has no hidden fees and no minimum balance requirement. The interest rate varies by currency type and fluctuates with market values. Interest accrues daily and is added to the lender’s account monthly - so users will earn interest on their own interest each month. Also, the Interest Payment Flex option lets them choose the currency users' interest is paid.<img src="https://cdn.builder.news/news/11ece7e5a50a7045a8e6023f659fee92.jpg" alt="BlockFi best DeFi Lending platform" title="BlockFi" width="600" height="224">BlockFi is one of the few crypto exchanges established in the United States, and it complies with all federal and state rules. As previously stated, funds in a BlockFi account, like all crypto assets, are not guaranteed by the FDIC or SPIC.<h4>Supported assets</h4><div class="pr-block-special">Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Polkadot (DOT), Dogecoin (DOGE), Avalanche (AVAX), Polygon (MATIC), FTX Token (FTT), Cosmos (ATOM), Litecoin (LTC), Chainlink (LINK), Near Protocol (NEAR), Algorand (ALGO), Tron (TRX), Bitcoin Cash (BCH), Fantom (FTM), UniSwap (UNI), Decentraland (MANA), Axie Infinity (AXIE), The Sandbox (SAND), Filecoin (FIL), EOS (EOS), Aave Token (AAVE), Gala (GALA), Basic Attention Token (BAT), THORChain (RUNE), Serum (SRM), USD Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), PAX Gold (PAXG), Gemini Dollar (GUSD), and Paxos Standard (PAX).</div><h3>Fulcrum</h3><h4>Overview</h4><ul><li>APR: 5.3%</li><li>Fees: TBU</li><li>Withdrawal limits: No</li></ul>Not only against the common practice like KYC or AML in DeFi market, but the platform also skips the part of conducting user verifications or credit checks, it is the Fulcrum DeFi lending platform. This lending protocol uses the open-source bZx protocol to reduce the danger of unauthorized access to users' crypto wallets, allowing them to keep ownership of their keys without the platform having direct access.<img src="https://cdn.builder.news/news/11ece7e5a50a74b8a8e6023f659fee92.jpg" alt="Fulcrum best DeFi lending platform" title="Fulcrum supports lending" width="600" height="179">Fulcrum is considered one of the best DeFi lending platforms in 2022 as the program allows cryptocurrency holders to earn passive income without "giving up control" of their tokens, so making the loans safer but with higher borrowing interest rates. Moreover, it differs from other crypto lending services in that there is no minimum deposit or lockup period which means users can withdraw balance any time.<h4>Supported assets</h4><div class="pr-block-special">Ethereum (ETH), Kyber Network Krystal (KNC), Chainlink (LINK), Wrapped Bitcoin (WBTC), USD Tether (USDT), UniSwap (UNI), Aave Token (AAVE), Compound (COMP), and Loopring (LRC).</div><h3>Algofi</h3><h4>Overview</h4><ul><li>APY: Up to 4.1%</li><li>Fees: TBU</li><li>Withdrawal limits: TBU</li></ul>Algofi, an <a href="https://www.builder.news/project-review/algorand-review-a-layerone-extensible-blockchain-based-on-proofofstake-ex4WF" alt="Algorand Review" title="Algorand Review: A layer-one extensible blockchain based on proof-of-stake" target="_blank" rel="" class="">Algorand</a> product, is a popular lending protocol besides being a decentralized exchange where users can take part in the cryptocurrency market with a diversity of Algorand assets and get high-interest rates. Additionally, users have the option of borrowing digital assets while using the already-deposited assets as security.&nbsp;The Algofi protocol only permits borrowing that is completely collateralized.&nbsp;By putting money into the protocol, users may get collateral they can use as security for loans. The Interest Rate Model, supply, demand, and algorithmic rates decide how much interest consumers get.There is also a program for Lend and Earn. The "Lend and Earn" feature is just available on the Algofi Lending V2. In this function, users lend assets to the Algofi Lending V2 protocol to create bAssets in a lend and earn transaction.&nbsp;bAssets are depository receipts that represent a supply (lend) position in a given market. For example, bUSDC can be generated after users buy USDC. The quantity of USDC that may be exchanged for one bUSDC increases monotonically over time. The USDC market application manages this expansion, which shows the interest made by supplying USDC.&gt;&gt;&gt; Read more:&nbsp;<a href="https://www.builder.news/crypto-insights/top-5-best-cryptocurrencies-to-invest-in-2022" alt="best cryptocurrencies to invest 2022" title="Top 6 best cryptocurrencies to invest in 2022" target="_blank" rel="" class="">Top 6 best cryptocurrencies to invest in 2022</a><img src="https://cdn.builder.news/news/11ed291376aa42d1a8e6023f659fee92.jpg" alt="Algofi lending market" title="Algofi lending market" width="600" height="270"><h4>Supported assets</h4><div class="pr-block-special">Algorand coin (ALGO), STBL2, USD Coin (USDC), USD Tether (USDT), goBTC, goETH.</div><h3>Lendingblock</h3><h4>Overview</h4><ul><li>APY: Up to 13.80%</li><li>Fees: None</li><li>Withdrawal limits: Only at end of the term</li></ul>Another top DeFi lending platform is Lendingblock. This lending platform includes fixed-term savings accounts, crypto-backed loans, and cryptocurrency exchange. If users stake its native token - LND, they can get competitive rates for both lenders and borrowers. In case users don't stake LND, the maximum interest rate of 10% is lower than some of its competitors' crypto loan rates.<img src="https://cdn.builder.news/news/11ece7e5a50a866ea8e6023f659fee92.jpg" alt="Lendingblock best Defi lending platform" title="Lendingblock " width="600" height="270">Regarding the interest payment, returns are paid in-kind, which means users will get their money back in the form of the cryptocurrency they have put in. However, rather than generating interest indefinitely, these accounts have set durations of one to six months. Users also won't be able to access the money they put down until the conclusion of the term.<h4>Supported assets</h4><div class="pr-block-special">Bitcoin (BTC), Ethereum (ETH), and USD Tether (USDT).</div><h3>Venus Protocol</h3><h4>Overview</h4><ul><li>APY: Up to 12%</li><li>Fees: Yes</li><li>Withdrawal limits: No</li></ul>Being another DeFi project on Binance, Venus Protocol provides a low-cost, time-saving and decentralized lending platform. Venus is a money market protocol that allows lenders to give loans in exchange for a return on their tokens and borrowers to take out loans using $XVS and other currencies as collateral.<img src="https://cdn.builder.news/news/11ece7e5a50a8af0a8e6023f659fee92.jpg" alt="Venus best DeFi lending platform" title="Venus Protocol" width="600" height="304">&gt;&gt;&gt; You might also concern:&nbsp;<a href="https://www.builder.news/crypto-insights/best-crypto-staking-platforms" alt="best crypto staking platforms" title="7 best crypto staking platforms in 2022" target="_blank" rel="" class="">7 best crypto staking platforms in 2022</a>.Venus distinguishes itself from other money market protocols by being able to borrow other crypto assets as well as minting synthetic stablecoins with over-collateralized positions backed by a basket of cryptocurrencies to safeguard the protocol.Moreover, users who lend their assets on Venus will have full control over their property which means, they can withdraw a portion of their balance to BSC wallet at anytime.<h4>Supported assets</h4><div class="pr-block-special">Polkadot (DOT), PancakeSwap (CAKE), Tron (TRX), Cardano (ADA), Polygon (MATIC), Aave Token (AAVE), Dai (DAI), USD Coin (USDC), USD Tether (USDT), Filecoin (FIL), Binance Coin (BNB), Bitcoin Cash (BCH), TrueUSD (TUSD), Binance USD (BUSD), Beacon ETH (BETH), Litecoin (LTC), XRP (XRP), Chainlink (LINK), Dogecoin (DOGE), Bitcoin BEP2 (BTCB), Ethereum (ETH), Xswap protocol (XSP), and Venus protocol (XVS).</div><h3>Binance Savings</h3><h4>Overview</h4><ul><li>APY: Up to 20%</li><li>Fees: Yes</li><li>Withdrawal limits: No</li></ul>The final option to consider from our list of the best DeFi lending platforms is Binance. This platform is best known for its leading crypto exchange – which offers more than 1,000 trading markets to its nearly 100 million clients.You can, however, use Binance for its DeFi lending services too. At the forefront of this is its crypto interest accounts, which offer some of the best yields in the market on medium and low-cap coins. For instance, This is also the case with its liquidity provision tools.<h4>Supported assets</h4><div class="pr-block-special">More than 190 coins for flexible savings and more than 10 locked savings.</div><img src="https://cdn.builder.news/news/11ece7e5a50a95f0a8e6023f659fee92.jpg" alt="Binance savings best defi lending platform" title="Binance Savings" width="600" height="290"><h2>FAQs about the best DeFi lending platforms</h2><h3>Is DeFi lending safe?</h3>From a certain point of view, lending is always risky because of not only the lending mechanism but also the platforms offering thiss kind of cryptocurrency service. DeFi rug pulls, flash loans, and impermanent loss are some risks proposed from lending in DeFi. However, users are well-advised to do their own research before making any decision in any aspects of this field, not only in DeFi lending.<h3>How does DeFi lending work?</h3>As we already mentioned in the first part of the article, DeFi lending works simply as traditional lending. Crypto investors may now lock up their assets or utilize them to offer liquidity across a variety of decentralized platforms and get monthly interest payments, much like placing money into a savings account to receive interest payments.<h3>What are the best DeFi lending rates?</h3>It is simple to get the point that, the higher APY is, the more interest you can gain. However, this is only true when you have the right pairs for lending and borrowing. If the pairs are fragile and not showing any good performance over time, high APYs cannot reflect they have the best DeFi lending rates.<div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

These are 8 best DeFi lending platforms you must try in 2022.

8 best DeFi lending platforms in 2022