The crypto market has faced a sharp correction during the first few months of 2025, leaving many investors at a crossroads: they need liquidity, but don't want to sell their assets at a loss. Fortunately, the decentralized financial ecosystem (DeFi) offers innovative solutions to this problem. In this article, we will explore in detail how decentralized lendings work, their key strategies and the safest protocols to implement them.

Decentralized loans are one of the oldest financial products adapted to the crypto world. Their operation is simple:

1. You deposit an asset as collateral (e.g. Bitcoin or Ethereum).

2. You borrow against another asset (usually a stablecoin such as USDT or USDC).

3. You maintain exposure to your collateral while using the borrowed capital for other opportunities.

Unlike traditional lending, these protocols operate through smart contracts, eliminating intermediaries and allowing 24/7 transactions with no credit requirements.

1. Bull Market: Leverage for Increased Exposure

Mechanics

• You deposit BTC/ETH as collateral.

• You borrow in stablecoins (e.g. 30-40% of the value of your collateral).

• You use those funds to buy more BTC/ETH.

Benefit: If the price of your asset rises, your profits are multiplied (you pay the debt in stablecoins, whose value does not change).

Example:

• Colateral: 1 BTC ($100,000).

• Loan: $30,000 in USDT → purchases additional 0.3 BTC.

• If BTC rises to $150,000

  • Your total position is worth $195,000 (1.3 BTC).

  • You pay the 30,000 borrowed and keep 30,000 borrowed and keep 165,000 (vs. $150,000 without leverage).

2. Bear Market: Shorting without Selling Your Portfolio

Mechanics

• You borrow a volatile asset (e.g. ETH).

• You sell it on the spot market.

• When the price falls, you repurchase to repay the loan.

Benefit: You profit in the fall without touching your main holdings.

1. Liquidation:

   • If the value of your collateral falls below a threshold (e.g. 75% LTV), the protocol will automatically sell it to cover the debt.

   • Solution: Never ask for more than 30-50% of the collateral value and monitor price levels.

2. Variable Interest Rates:

   • Borrowing costs may increase at times of high demand.

   • Solution: Use protocols with stable rates or calculate safety margins.

1. Aave (Ethereum/Arbitrum/Base)

   • Advantage: Highest LTV ($30 billion), making it the most liquid and secure.

   • Rates: ~4-8% per annum for loans in stablecoins.

2. Venus (Binance Smart Chain)

   • Advantage: Integration with BNB and stablecoins, ideal for Binance users.

   • Unique feature: Rewards in native tokens in addition to interest.

3. Solend (Solana)

   • Advantage: Low commissions and simultaneous staking option.

   • Ideal for: Those who operate in Solana and want cost efficiency.

• No-Sell Training: Investors who used their BTC as collateral to fund crypto education, avoiding realizing losses.

• Combined Strategies: Order USDT at 5% p.a. and invest it in yield farming yielding 15%, generating a spread of 10%.

Decentralized lending is a powerful tool for managing liquidity without giving up market exposure. However, they require careful risk management, especially in volatile environments. For those who want to go deeper, I recommend starting with small amounts in protocols such as Aave or Venus, and scale progressively as experience is gained.