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When someone is preaching the good news of decentralized finance, there is a great chance that one would hear that DeFi projects are designed to take the tools and assets that are available in the traditional financial industry and ensure that they are easily available to anyone wherever they may be. Decentralized finance preaches the good news of offering the advantages of traditional finance projects while taking out their disadvantages and replacing them with the perks of decentralization.
Crypto or digital asset are similar to the assets seen in the conventional banks, but they are in a decentralized form.
Those that are in love with DeFi must have come across DeFi projects like UniLend. UniLend currently offers DeFi services like spot trading, margin trading, borrowing, as well as lending.

https://i.ibb.co/NmgTfx1/TAPPING-THE-UNTAPPED.png (https://ibb.co/TbDWJcK)


With the usage of DeFi loans, users can easily borrow funds without them having to go through the rigorous processes that are common in banks. Have you attempted to borrow funds from the bank? There is a great chance that you will scream in terror.
The numerous checks and how long the checks will take usually discourage borrowers from seeking out loans from traditional banks. This leaves a vacuum for DeFi projects like UniLend.
What of the issue of people depositing their funds in the bank for a long time, yet getting little or nothing in interest? This can be annoying, as banks take the money that their clients deposit and lend them out to borrowers, yet offer their clients little or nothing in return. The banks end up taking almost everything without considering their clients.

How do DeFi loans work?
For DeFi loan projects like UniLend, they add an extra means for crypto asset's holders to earn interests. Take a look at the crypto assets in your wallet. There's a great chance that it is sitting pretty there, without accruing a dime. In the end, the value may even reduce. Keeping one's financial assets be it fiat currency or crypto idle in the bank or wallet will end up being a pain to the holder, being that it doesn't bring interest but may reduce in value.
This is why DeFi loan is an attractive feature to lenders too.

When lenders lend their crypto assets to borrowers, they earn interest after a period while taking possession of their principal amount too. A great way to achieve the aforementioned is via lending pools. They can be likened to the loan offices seen in a typical bank.

Why is it special?
Apart from the benefits that come with using a typical financial institution, the likes of DeFi loan projects like UniLend also adds the benefits that come with using the blockchain technology:
• Decentralization is the gospel of this platform, combined with the fact that anonymity is a mainstay here.
• Lenders can easily earn interest by lending their digital assets to those that want them.
• Greater security for lenders and their funds.

Conclusion
If you are tired of seeing your digital assets lying fallow in your wallets, it won't be a bad idea to try out lending your digital assets on platforms like UniLend.finance (http://UniLend.finance)

Initially posted here (https://www.publish0x.com/tochi-blog/why-lending-and-borrowing-is-needed-in-defi-xqogdjz)