Lending Protocol Integration

Lending protocols are smart contracts that pool crypto assets and enable lending/borrowing. Users deposit collateral, earn interest on deposits, and can borrow against their collateral. The protocol algorithmically adjusts interest rates based on supply/demand. Aave and Compound are the largest; MakerDAO is a stablecoin lender (DAI). Developers integrate these protocols by: calling contract functions (deposit, borrow, repay), listening to events, or building frontend UIs. The goal is leveraging existing liquidity (billions locked) to enable new applications.