When you lend crypto on a lending protocol, a decentralized platform that lets users earn interest by locking up their crypto as loans. Also known as DeFi lending, it removes banks and middlemen—but puts all the risk on you. Without proper lending protocol security, your funds can vanish overnight due to bugs, hacks, or bad design.
Not all lending platforms are built the same. The best ones rely on smart contract audits, independent reviews by security firms that check for code flaws before launch. Also known as code audits, these are non-negotiable—if a project skips them, walk away. Then there’s collateralization, the system that forces borrowers to lock up more value than they borrow, so lenders are protected if prices drop. Also known as over-collateralization, it’s the safety net that keeps loans from going underwater. If a protocol uses low collateral ratios (like 110% instead of 150%), it’s playing with fire. Look at the real-world examples: platforms like Aave and Compound survived market crashes because they kept collateral high and audits public. Meanwhile, projects with no audits and shaky collateral rules? They’re the ones that get hacked—and users lose everything.
You’ll find posts here that dig into real cases—like how DIFX and Bitbaby Exchange failed on basic security, or how Archer Swap and Airbloc had clean code but no users to back them up. Some posts expose fake airdrops tied to lending platforms pretending to be legitimate. Others show how regulation changes in places like Switzerland and Vietnam force protocols to improve transparency. This isn’t theory. It’s what happened. What you’ll see below isn’t just a list of articles—it’s a map of where the risks hide and how to avoid them.
Lending protocols in DeFi offer high yields but come with serious security risks like flash loan attacks, oracle manipulation, and reentrancy bugs. Learn how hacks happen, why audits aren’t enough, and how to protect your funds in 2025.