Do you remember the dramatic change in the lending market in April 2025? A new lending protocol went live and in just 60 minutes, it attracted $10 million worth of BNB funds. Even more astonishing, it directly cut the borrowing interest rate on the entire BNB Chain from 30% down to 5%, completely breaking the monopoly held by the previous leading lending protocols.

Why did it cause such a big stir? Essentially, it was because users were fed up with old products. Long-term idle funds, low utilization rates, rigid interest rate mechanisms—these longstanding issues had never been addressed. The new protocol, by optimizing the vault matching mechanism, managed to raise fund utilization from a low point to 90%, and reduced borrowing costs to just 0.84%. Plus, the interest rates could be adjusted in real-time based on market conditions.

For retail investors like us, this presented an immediate opportunity. For example, by collateralizing 1,000 BTCB, you could borrow 660 BNB to participate in Launchpool, with a borrowing cost of only 0.84%, while earning a stable return of over 7%. At the same time, it also helped hedge against BNB price drops. This wave of innovation also pushed existing giants to optimize their algorithms and expand collateral options, resulting in a 40% growth in overall lending volume on the BNB Chain within three months. Ultimately, DeFi lending competition is not just about on-paper TVL numbers, but about real efficiency and user experience.