Meanwhile, Lend users stand to make higher yields from unsecured lending to institutions that have been evaluated for their creditworthiness by Credora. Besides, lenders can exit their positions at any time, subject to availability of liquidity in the pool. According to Ribbon, most unsecured lending in Decentralized Finance (DeFi) is for the fixed term, meaning lenders cannot withdraw deposits until the loan maturity. DeFi is a term used to describe financial activities carried out on a blockchain without the help of intermediaries.
