All termsDeFi and RWA IntegrationWorth knowing
Onchain Lending
Onchain lending refers to lending activity in which important parts of the lending process are recorded, managed or executed using blockchain based infrastructure. Depending on the structure, smart contracts may help manage loans, collateral, payments or other lending functions.
Why it matters to you
Onchain lending can make parts of credit markets more transparent and programmable. But when loans involve real world borrowers or assets, important elements such as underwriting, legal enforcement and borrower activity may still take place offchain.
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