What is DeFi?

The first time you deposit USDC into a pool, your wallet asks for an approval and then the deposit. Which of them costs gas?

• Only the deposit, because the approval moves no money
• Both, because each one is a transaction on the chain
• Neither, because gas is only charged on sends between wallets

Borrowers rush into a lending pool and its utilization climbs from 70% to 95%. What usually happens to the rate depositors earn?

• It stays where it was when you deposited
• It rises, because the rate follows borrowing demand
• It falls, because the pool has less cash