Lending & Borrowing in DeFi by Carlos Pereira

Decentralised lending and borrowing allow users to supply assets, obtain loans and manage collateral through blockchain-based protocols and smart contracts. These systems can operate without a traditional bank, but they introduce a different set of financial, technical and operational risks. Lending & Borrowing in DeFi explains how collateral, interest rates, liquidity pools, borrowing limits and liquidation mechanisms work on-chain. Readers learn why overcollateralisation is common, how variable rates respond to supply and demand, what triggers liquidation, and how price volatility, blockchain oracles, smart contracts and governance decisions can affect a position. Written in clear, practical language, this volume provides a structured framework for understanding decentralised credit markets before using them. It does not recommend individual protocols or promise financial returns. Its purpose is to help readers evaluate risk, recognise dependencies and make more informed decisions.