PBANK is making waves as a collateral token on Pump, unlocking new possibilities for users in the DeFi lending space. Here's what you need to know about how it works.

The token serves a dual purpose—it's not just another Pump asset, but a functional collateral option within the PumpBank lending protocol. Users can leverage their PBANK holdings to borrow USDC, which opens up liquidity without forcing you to sell your position.

The mechanics are straightforward: you can borrow up to 25% against your PBANK collateral. This ratio strikes a balance between accessibility and risk management, giving users meaningful leverage while maintaining protocol stability.

For those exploring DeFi strategies, this creates interesting opportunities. Whether you're looking to access stablecoin liquidity for trading, yield farming, or other ventures, PBANK's integration with PumpBank's lending infrastructure provides a direct pathway. The current metrics show 291k in relevant activity, indicating growing adoption.

As always, do your own research and understand the risks involved with any lending protocol before participating.