Part 5/10:
In contrast to the opaque nature of centralized lending, DeFi platforms like Aave and Compound offer transparency, where every transaction is recorded on-chain. Recent shifts have shown that DeFi lending markets are beginning to rebound, fueled in part by innovative assets like Pendle tokens.
Pendle allows for a split between the principal and yield-bearing assets, making it an attractive option for borrowing. This development is further catalyzed if exchanges begin allowing borrowing against popular assets, which could significantly unlock additional liquidity in the market.
Asset-Specific Borrowing Dynamics
The report delves into borrowing trends for stablecoins, Bitcoin, and Ethereum: