# Lending protocol

## Definition

A lending protocol is a DeFi smart-contract system that allows users to supply assets for lending and, under defined rules, lets borrowers take loans against collateral or other mechanisms.

## What it means in practice

Interest rates, collateral factors and liquidation conditions are determined by the protocol and market state.

## How this concept appears in Terenval Wallet

Terenval can be used as a signing wallet with compatible lending dApps, while loan accounting and risk remain inside the external protocol.

**Important:** Supplying or borrowing assets can expose users to liquidation, oracle, smart-contract and liquidity risk.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [DeFi](https://wallet.terenval.com/glossary/defi/)
- [Collateral](https://wallet.terenval.com/glossary/collateral/)
- [Crypto borrowing](https://wallet.terenval.com/glossary/borrowing/)
- [Liquidity pool](https://wallet.terenval.com/glossary/liquidity-pool/)
- [smart contract](https://wallet.terenval.com/glossary/smart-contract/)
- [walletconnect](https://wallet.terenval.com/glossary/walletconnect/)

## Related Terenval Answers

- [How to Secure a Non-Custodial Crypto Wallet](https://wallet.terenval.com/answers/how-to-secure-non-custodial-crypto-wallet/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)
- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)

## Sources

- https://ethereum.org/en/defi/
- https://docs.walletconnect.network/
- https://wallet.terenval.com/info/security/

Official page: https://wallet.terenval.com/glossary/lending-protocol/