Cryptocurrencies, like physical currencies, can be used to earn a yield on your idle digital assets through a variety of ways. The most popular way of generating yield is lending, and newer (but unsustainable) ways of generating yield have emerged, such as yield farming, which will be explained in a future post. Crypto lending is a financial activity that exists similar to how money is lent in the traditional finance space (money market). In traditional finance, debt – which originate from banks – is a motor that powers the economy. Banks collect deposits from savers like you and me, keep some of them in reserves, then lend the deposits out to borrowers. Banks can technically lend more than what they have in their balance sheet, a phenomenon known as fractional reserve banking. Typically, banks only need to keep 10% of the deposit (or whatever reserve is set by the central bank), and lend out the rest, which helps to expand the economy....