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DeFi Lending 101: How to Earn Interest and Borrow Without a Bank
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DeFi Lending 101: How to Earn Interest and Borrow Without a Bank

Daniele Montemale
August 19, 2025
4 min read
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Daniele Montemale

Daniele Montemale is a senior marketing leader with two decades of experience driving growth and performance. At Peridot, he advises on strategy and contributes thought leadership on cross-chain DeFi, onchain UX, and bridging Web2 simplicity into Web3.

Frequently Asked Questions

Are rates fixed or variable
Most pools use variable rates that change with utilization. Some markets offer more stable options, but they can still adjust under certain conditions.
What happens if my health factor falls below the safe range
Your position can be partially liquidated. A liquidator repays part of your debt and receives a portion of your collateral.
How do protocols know the price of assets
They read decentralized price feeds, commonly Chainlink based oracles, which update collateral and debt values on chain.
Is cross chain lending possible
Yes. Peridot’s approach focuses on giving you a single, simple experience across chains, so you do not need to juggle multiple wallets or bridges.
Why would I use a stablecoin DEX during lending
Efficient stablecoin swaps help you rebalance or repay quickly, which reduces risk when markets move.

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