Crypto lending typically involves three parties: the lender, the borrower, and a DeFi (Decentralized Finance) platform or crypto exchange. In most cases, the loan taker must put up some collateral before borrowing any crypto. You can also use flash loans without collateral (more on this below). On the other side of the loan, you may have a smart contract that mints stablecoins or a platform lending out funds from another user. Lenders add their crypto to a pool that then manages the whole process and forwards them a cut of the interest.