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  1. Home
  2. /Glossary
  3. /Collateral
Back to Glossary
defi

Collateral

Assets you put up as security when borrowing.

Definition

Assets you put up as security when borrowing. In DeFi, you might deposit ETH as collateral to borrow stablecoins. If your collateral's value drops too much, you'll get liquidated and lose it.

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GuideStablecoins Guide

Related Terms

Liquidation

When a borrower's collateral is forcibly sold because their position became too risky.

Margin

Borrowed money used to increase trading position size.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

Adaptive Fee

DEX trading fees that automatically adjust based on market conditions like volatility or trading volume.

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