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DeFi Lending Dominates Total Value Locked in Decentralized Finance
Gate News bot message, lending protocols continue to maintain their position as the largest segment within the DeFi ecosystem when measured by Total Value Locked (TVL). This dominance mirrors traditional financial markets, where debt markets hold the largest share of financial activity.
The current structure of DeFi lending protocols emphasizes collateralized lending mechanisms, with potential expansion into undercollateralized lending through the integration of on-chain reputation systems and KYC verification methods.