You can have assets on chain that can be used as collateral which can be liquidated if a loan isn't paid back. Additionally lending money is not only done so people can borrow from it. For example decentralized exchanges need a lot of liquidity in order to execute trades without very much slippage. You can provide liquidity to them and they will pay out transaction fees to you in exchange.
You can have assets on chain that can be used as collateral which can be liquidated if a loan isn't paid back. Additionally lending money is not only done so people can borrow from it. For example decentralized exchanges need a lot of liquidity in order to execute trades without very much slippage. You can provide liquidity to them and they will pay out transaction fees to you in exchange.