Requiring borrowers to deposit more collateral than the amount they're borrowing.
Requiring borrowers to deposit more collateral than the amount they're borrowing. In DeFi, you typically need 150% or more collateral, meaning you deposit $150 worth of ETH to borrow $100 in stablecoins. This buffer protects lenders if the collateral's value drops, but it's capital inefficient.
Assets you put up as security when borrowing.
A DeFi application that lets you lend your crypto to earn interest or borrow against your holdings.
When a borrower's collateral is forcibly sold because their position became too risky.
A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.
One of the biggest lending and borrowing protocols in DeFi.
A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.
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