Lending protocol

A lending protocol is a decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrency assets without traditional intermediaries like banks. These protocols use smart contracts to automate lending terms, interest rates, and collateral management. Popular examples include Aave, Compound, and MakerDAO. Tokenized domains can participate in lending protocols as collateral—users can lock their valuable domain NFTs to borrow cryptocurrency, or earn yield by providing liquidity. This creates new financial opportunities for domain holders, allowing them to access capital without selling their domains or generate passive income from their digital real estate holdings.