What are the revenue models for DeFi lending and borrowing platforms?
DeFi lending and borrowing platforms rely on well-structured revenue models to remain sustainable while delivering value to users. One of the core income sources comes from interest generated on loans. Borrowers pay interest on the assets they borrow, while platforms retain a portion of this amount as revenue, often through an interest rate spread between lenders and borrowers. Transaction fees also play a key role, as small charges are applied to lending, borrowing, repayments, or withdrawals conducted on the platform.
Another important revenue stream is liquidation fees. When a borrower’s collateral drops below the required threshold, the platform liquidates assets and charges a fee, helping protect lenders while earning additional income. Many platforms also introduce native or governance tokens that unlock benefits such as reduced fees, access to premium features, or voting rights. These tokens strengthen community involvement and contribute to long-term ecosystem growth.
In advanced DeFi Lending and Borrowing Platform Development, developers may also explore integration fees by partnering with wallets, exchanges, or other DeFi protocols. By combining multiple revenue strategies, platforms can create resilient, user-centric ecosystems that balance profitability with decentralization and trust.
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