The world of DeFi is abuzz with the launch of new lending protocols. But how do they differ from traditional lending? In DeFi, lending platforms use smart contracts to facilitate peer-to-peer lending, eliminating intermediaries and reducing costs. This means higher returns for lenders and lower interest rates for borrowers.

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Traditional lending relies on intermediaries, whereas DeFi lending uses smart contracts to eliminate them, resulting in lower costs and higher returns for lenders.