**Introduction** 

[DEFI lending platforms](https://defipulse.com/defi-list/) like [Aave](https://docs.aave.com/portal/) are decentralised finance protocols which enable anyone to either lend their crypto-assets (usually ethereum) for high % interest, or lock up their crypto-assets to borrow a **fractional amount** ([usually up to 75%](https://docs.aave.com/risk/liquidity-risk/borrow-interest-rate#variable-interest-rate-model-parameters)) of another crypto-asset.

For example, using Aave you could lock up $100 of Ethereum and get a loan of $75 in USDC.

There is an incentive to lend your cryptocurrency on a DEFI platform, because the platforms typically offer higher interest than a bank deposit. As a crypto-asset lender, you can get up to 9% PA on some assets, which is better than any bank deposit.

**My Confusion...**

However, I don't see why anyone would **borrow** another crypto-asset using a DEFI website/protocol, because you need to lock up more collateral than the total loan is actually worth.

**My Question...**

If the person already has enough crypto to trade into the other asset in the first place, then why would they bother borrowing it from a DEFI platform?