Lending pools in blockchains operate like digital banks, eliminating the need for traditional intermediaries. In these systems, individuals with extra cryptocurrency can contribute their tokens to a pool,
creating a collective fund. Borrowers can then access this pool, but they must provide collateral
to secure their loans, ensuring the safety of the lenders’ funds. Lenders earn interest from their
contributions, which comes from the fees paid by borrowers. This setup allows people to lend or
borrow cryptocurrency easily and safely, all without needing a traditional financial institution.We’ve enabled multiple lending pools in our Earn section for yield opportunities on Morpho and Aave protocols.
A Liquidity Provider pool is where users can provide liquidity to
decentralized exchanges in return for earning a portion of the trading fees and other rewards.
These pools play a crucial role in the functioning of DEXs by ensuring there is sufficient liquidity
for trading activities.Currently, Clave does have any LP pools.
