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You don’t know this
Let’s say you have $100 in ETH
And you really need $20 but you don’t want to sell your ETH
Because you think ETH will still pump
You can lend your $100 ETH and borrow $20 in USDC
In few months if ETH pumps, and your initial $100 → $130
You can pay back the $20 and still have your $110 to yourself
This is called lending in DeFi