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Crypto Lending and Borrowing Explained

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Crypto lending and borrowing are essential components of the digital asset economy, allowing investors to maximize their holdings while maintaining liquidity. Institutional crypto lending has become a popular way to generate passive income, as it allows institutions and individual investors to lend their digital assets in exchange for interest. With the rise of cryptocurrency loans, centralized and decentralized platforms offer users the opportunity to earn yields or access funds without selling their crypto holdings. This article delves into how crypto lending works, the advantages of borrowing, and the risks associated with these financial instruments.

How Does Cryptocurrency Lending Work?

Crypto lending operates through centralized and decentralized platforms, allowing users to lend their assets and earn interest or borrow funds by providing collateral.

Centralized exchanges (CEXs) facilitate crypto lending by acting as intermediaries. Users deposit their cryptocurrencies into lending pools, and the platform manages the lending process, distributing funds to borrowers. In return, lenders receive interest payments based on the crypto interest rates set by the platform. These rates vary depending on the asset chosen and market conditions. Centralized crypto lending is often preferred by investors seeking user-friendly services and higher security.

Decentralized finance (DeFi) platforms facilitate peer-to-peer crypto lending through smart contracts. Unlike centralized exchanges, these platforms eliminate intermediaries, ensuring a transparent, trustless lending process. Lenders deposit funds into liquidity pools, where borrowers can access loans by providing collateral. The interest rates are algorithmically determined based on supply and demand dynamics.

Benefits of crypto lending:

  • Passive income – lenders earn interest on their idle assets without actively trading. By participating in lending platforms, investors can put their digital assets to work, accumulating interest over time. This approach is especially beneficial for long-term holders who want to generate income without selling their holdings. Some lending platforms offer tiered interest structures where higher deposits lead to better returns, optimizing profit potential.
  • Liquidity optimization – digital asset liquidity improves as lenders provide assets to borrowers in exchange for interest. Instead of keeping assets idle in wallets, lending ensures that digital assets remain in circulation, enhancing overall market efficiency. This increased liquidity benefits traders and investors by reducing price slippage and enabling seamless transactions across exchanges and DeFi protocols.
  • Flexible terms – many platforms offer flexible lending terms, allowing users to withdraw or reinvest their assets. Some lending services provide both fixed and variable interest rates, allowing lenders to choose based on their risk tolerance. Additionally, some protocols allow users to lock funds for a specified period to earn higher yields, while others provide instant access to funds, ensuring convenience for users who may need liquidity at short notice.

Advantages of Crypto Borrowing

Crypto borrowing allows users to unlock the value of their holdings without selling them. This method is particularly useful for investors who want to maintain exposure to their assets while accessing liquidity.

Borrowers deposit cryptocurrencies as collateral to secure loans. These collateralized loans ensure that lenders are protected from default. The loan amount is determined based on the loan-to-value (LTV) ratio, which varies across platforms. Borrowers repay the loan with interest, regaining access to their collateralized assets upon full repayment.

Collateral is the digital asset that a borrower deposits to secure a loan. If the collateral value drops significantly due to market fluctuations, the platform may liquidate the borrower’s assets to recover funds, ensuring the lender’s protection.

Benefits of crypto borrowing:

  • Access to capital without selling assets – investors can obtain liquidity without triggering taxable events.
  • Leverage for trading – borrowed funds can be used for margin trading or investing in additional assets.
  • Lower interest rates – many cryptocurrency loans offer competitive rates compared to traditional financial institutions.
  • Stablecoin lending – borrowers can obtain stablecoin lending options, allowing them to access dollar-pegged assets without fiat conversion.

What Are Crypto Loan Risks?

Despite their benefits, cryptocurrency loans carry risks that investors should consider:

  • Volatility Risk. The crypto market is highly volatile. A sharp drop in asset value can lead to collateral liquidation.
  • Smart contract vulnerabilities. DeFi lending platforms rely on smart contracts, which may contain bugs or vulnerabilities leading to asset losses.
  • Counterparty risk. In centralized platforms, users must trust the platform’s solvency and security measures to safeguard their funds.
  • Regulatory uncertainty. Governments worldwide continue to develop regulations for digital asset lending, which could impact platform operations and lending policies.

Crypto lending and borrowing present significant opportunities for investors to maximize their holdings, earn passive income, and access liquidity without selling their assets. Whether through centralized exchanges or peer-to-peer crypto lending platforms, these financial tools are reshaping the digital economy. However, investors need to weigh the risks, including market volatility and regulatory uncertainties, before participating in lending and borrowing activities.

 

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Diagnosis

Lung cancer drug shows breast cancer potential

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Ovarian cancer cells quickly activate survival responses after PARP inhibitor treatment, and a lung cancer drug could help block this, research suggests.

PARP inhibitors are a common treatment for ovarian cancer, particularly in tumours with faulty DNA repair. They stop cancer cells fixing DNA damage, which leads to cell death, but many tumours later stop responding.

Researchers identified a way cancer cells may survive PARP inhibitor treatment from the outset, pointing to a potential way to block that response. A Mayo Clinic team found ovarian cancer cells rapidly switch on a pro-survival programme after exposure to PARP inhibitors. A key driver is FRA1, a transcription factor (a protein that turns genes on and off) that helps cancer cells adapt and avoid death.

The team then tested whether brigatinib, a drug approved for certain lung cancers, could block this response and boost the effect of PARP inhibitors. Brigatinib was chosen because it inhibits multiple signalling pathways involved in cancer cell survival.

In laboratory studies, combining brigatinib with a PARP inhibitor was more effective than either treatment alone. Notably, the effect was seen in cancer cells but not normal cells, suggesting a more targeted approach.

Brigatinib also appeared to act in an unexpected way. Rather than working through the usual DNA repair routes, it shut down two signalling molecules, FAK and EPHA2, that aggressive ovarian cancer cells rely on. FAK and EPHA2 are proteins that relay survival signals inside cells. Blocking both at once weakened the cells’ ability to adapt and resist treatment, making them more vulnerable to PARP inhibitors.

Tumours with higher levels of FAK and EPHA2 responded better to the drug combination. Other data link high levels of these molecules to more aggressive disease, pointing to potential benefit in harder-to-treat cases.

Arun Kanakkanthara, an oncology investigator at Mayo Clinic and a senior author of the study, said: “This work shows that drug resistance does not always emerge slowly over time; cancer cells can activate survival programmes very early after treatment begins.”

John Weroha, a medical oncologist at Mayo Clinic and a senior author of the study, said: “From a clinical perspective, resistance remains one of the biggest challenges in treating ovarian cancer. By combining mechanistic insights from Dr Kanakkanthara’s laboratory with my clinical experience, this preclinical work supports the strategy of targeting resistance early, before it has a chance to take hold. This strategy could improve patient outcomes.”

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Insight

Higher nighttime temps linked to increased risk of autism diagnosis in children – study

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Nighttime temperatures during pregnancy may be linked to a higher chance of an autism diagnosis in children, a recent study suggests.

The research tracked nearly 295,000 mother-child pairs in Southern California from 2001 to 2014 and linked warmer overnight temperatures with higher risk in early and late pregnancy.

Children of mothers exposed to higher than typical nighttime temperatures during weeks one to 10 of pregnancy had a 15 per cent higher risk of an autism diagnosis.

Exposure during weeks 30 to 37 was linked to a 13 per cent higher risk.

 Lead author David Luglio, a post-doctoral fellow at Tulane University, said: “A key takeaway is that we identified specific windows when a mother and her developing child can be most affected by exposures to higher nighttime temperatures.

“This is critical and hopefully can help mothers prepare accordingly.”

The study is described as the first to examine how temperature may affect fetal neurodevelopment, the process by which a baby’s brain and nervous system form during pregnancy.

Extreme temperatures linked to increased risk were classified as above the 90th percentile, meaning 3.6°F hotter than average, and the 99th percentile, 5.6°F above average.

The association held even after researchers accounted for factors such as neighbourhood conditions, vegetation and fine-particle air pollution.

The study could not account for other factors such as access to air conditioning. Researchers did not find the same association with daytime temperatures, potentially because people spend more time away from home during the day.

“Heat waves are becoming more frequent, and people may only think of the dangers of daytime heat exposure,” said Mostafijur Rahman, assistant professor of environmental health sciences at Tulane University.

“These results indicate a strong association between high nighttime temperatures during pregnancy and autism risk in children and show that we need to think about exposure to heat around the clock.”

The study did not examine how higher temperatures at night might affect prenatal development, though Luglio said it is possible that warmer nights disrupt sleep for pregnant mothers.

Previous research has suggested insufficient sleep during pregnancy may be linked to a higher risk of neurocognitive delays in children.

“Extreme heat exposure during pregnancy has been linked to a range of adverse health outcomes, including prenatal neurodevelopment delays and complications with an embryo’s development of a central nervous system,” Luglio said.

“The goal of our study was to specifically explore the link between prenatal heat exposure and autism diagnoses for the first time.”

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Entrepreneur

Kindbody unveils next-gen fertility platform

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Kindbody has launched a fertility platform integrating AI with clinical care and patient support for employers and health plans.

The platform will enter a pilot with select Kindbody employer clients in 2026, covering over three million lives, ahead of wider availability in 2027.

Building on the company’s clinical model, the platform aims to improve outcomes and cost efficiency across family-building journeys. It connects Kindbody-owned clinics, partner clinics and an integrated clinical app.

The app offers virtual care across conception, pregnancy and reproductive health, extending through the menopause transition.

Launch features include updates in medication management, third-party reproduction, adoption, pregnancy, men’s health and global programme design.

David Stern, chief executive of Kindbody, said: “With our next-generation fertility platform, Kindbody is redefining what comprehensive, intelligent and affordable family-building care looks like for employers, health plans and patients.

“By unifying best-in-class clinical care, AI-driven intelligence and whole-person support, we are making it easier and more cost-effective for more people to build the families they envision.”

Kindbody has expanded access via its national network of IVF centres, including IVIRMA, Inception Fertility and Ivy Fertility.

A new Fertility Medication Portal is designed to streamline authorisations so medicines can be dispensed on time, giving patients visibility from prescription to coverage, pharmacy fulfilment and delivery tracking.

Through KindMan, men’s health education, digital resources and integrated clinical care are expanding, including hormone management programmes.

Services cover andropause (age-related testosterone decline), erectile dysfunction, low testosterone and other male reproductive conditions.

Specialist fertility care includes semen analysis, diagnostic testing, male hormone panels, genetic testing, surgical sperm extraction and sperm cryopreservation.

Launching in the second quarter, a pregnancy support app will act as a digital companion for expecting and new parents, with resources, interactive tools and clinical assessments to identify social drivers of health and mental health needs during pregnancy and beyond.

Kindbody’s physician-led menopause programme provides consultations with board-certified obstetricians and gynaecologists to diagnose, treat and manage menopausal symptoms, including hormone replacement therapy where appropriate, with support from nutritionists, mental health therapists and pelvic floor specialists.

AI and analytics will be embedded across the care journey. An AI care navigator will guide employees from benefit activation through intake, triage and scheduling.

Tools will track benefits and treatment plans, showing coverage and expected out-of-pocket costs at each step.

AI-supported scribing will assist clinicians with documentation, and a predictor tool will estimate a patient’s likelihood of having a baby across different treatment paths.

In 2027, Kindbody plans a savings model for eligible large employers that it says will guarantee lower total fertility spend while improving clinical efficiency and patient experience.

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