The emergence of Crypto Lending 2.0, pioneered by protocols like MakerDAO, Maple Finance, and Alkemi Network, is revolutionizing the financial industry's lending practices. This innovative system combines blockchain technology, off-chain information, and compliant lending products to offer lenders unprecedented advantages such as transparency, global access to liquidity, enhanced settlement mechanisms, and advanced risk assessment techniques. Compared to traditional lending, DeFi lending platforms offer greater accessibility, transparency, speed, efficiency, lower costs, innovation, and flexibility. Decentralized finance (DeFi) lending platforms offer affordable credit to borrowers through over-collateralized loans, while under-collateralization utilizes advanced risk assessment techniques and alternative data sources to offer loans that require less collateral, broadening access to credit for borrowers who lack substantial collateral. Flash Loans are a novel lending mechanism within DeFi that provide borrowers with immediate access to funds without collateralizing assets upfront, offering benefits such as instant liquidity, efficient capital utilization, risk mitigation, and lower costs compared to traditional lending.