What is lending and borrowing?

Drift Protocol is also a decentralised money markets protocol that supports the borrowing and lending of assets.

As a decentralised money markets protocol, you can:

• deposit assets into Drift Protocol and earn yield; or

• borrow assets deposited by other Lenders at a variable interest rate.

Lenders provide liquidity to the market to earn yield on their assets, while borrowers are able to borrow from available liquidity pools in an over-collateralised fashion. Any interest earned from lending is vested immediately and automatically compounds.

You can view current lend and borrow interest rates in the Drift app at https://app.drift.trade/earn (opens in a new tab)