What is Borrow & Lend?
Velocity Protocol is also a decentralised money markets protocol that supports the borrowing and lending of assets.
As a decentralised money markets protocol, you can:
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deposit assets into Velocity Protocol and earn yield; or
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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 Velocity app at https://app.velocity.exchange/earn
Spot markets on Velocity support collateral and borrow-lend, but spot orders cannot be placed on the order book — spot DLOB trading is disabled. Borrowing/lending and cross-collateral deposits work as described below regardless.