Lending, if it is not concessional, is in itself very risky.
Cryptocurrency lending is doubly risky, as the risk of high price volatility of cryptocurrency is added to the usual risks. Before taking a loan in a cryptocurrency, you need to carefully calculate everything and, first of all, you need to anticipate subsequent changes in the cryptocurrency market. I would refrain from getting a loan in cryptocurrency. This is a lottery - here you can win and almost equally lose.
If we borrow 0.01BTC with an interest of 0.001BTC I would return 0.011BTC. Don't look at the dollar value, that will only break your heart if the value of Bitcoin goes down. Your goal as a lender is to increase the number of Bitcoins you are holding and as a borrower, you are obliged to return the Bitcoin that you borrowed with interest regardless of the dollar value.
