On-chain collateral and its impact on the cryptocurrency lending market

Self-custodial wallets are changing the DeFi lending industry by supporting on-chain mortgages and allowing users to have full control over assets such as platforms like Crypto.com Onchain. This shift introduces dynamic, algorithm-driven loan terms and real-time risk adjustments through smart contracts, but also exacerbates market volatility and smart contract risks, with unmanaged platforms clearing rates 40%.