WHALE FACTOR
AnalysisFeaturedAIMarketCalendarCryptoToolsAPI
Newsletter

Latest Articles

Unmasking Satoshi Nakamoto: Why the Crypto World Remains Skeptical

Apr 8, 2026

Oil Ceasefire Ripples Through Bitcoin: Why $150 Crude Still Looms

Apr 8, 2026

BigBear.ai's Stock Plunge: What It Means for Investors in 2023

Apr 8, 2026

DoorDash and Wing Bring 20-Minute Drone Deliveries to Atlanta in 2024

Apr 8, 2026

Home Depot's Halfway to Halloween: A $50 Billion Market Opportunity?

Apr 8, 2026

Kura Sushi USA Sells Off Despite Beating Wall Street Expectations

Apr 8, 2026

Kura Sushi Shares Sink 16% Amid CFO Departure Despite Earnings Beat

Apr 8, 2026

AI's $100 Billion Spending Spree: Overreaction or Future-Proofing?

Apr 8, 2026

News & Analysis

  • Latest News
  • Featured
  • Analysis
  • Blog
  • AI x Crypto
  • Newsletter
  • RSS Feed

Learn & Compare

  • Crypto Glossary
  • Learn Guides
  • How to Buy
  • Compare Coins
  • Best Of
  • Developers

Prices & Tools

  • All Prices
  • Bitcoin Price
  • Ethereum Price
  • Market Overview
  • All Tools
  • Fear & Greed
  • Crypto Calendar

Company

  • About Us
  • Search
  • Privacy Policy
  • Terms of Service
  • Sitemap
  • HTML Sitemap
Whale Factor|

2026 Whale Factor. All rights reserved.

  1. Home
  2. /Glossary
  3. /Undercollateralized Lending
Back to Glossary
defi

Undercollateralized Lending

DeFi lending where borrowers put up less collateral than they borrow, similar to traditional unsecured loans.

Definition

DeFi lending where borrowers put up less collateral than they borrow, similar to traditional unsecured loans. It requires trust, reputation, or credit scores, which are hard to do in crypto's pseudonymous environment. Maple Finance and TrueFi have built protocols for this, mostly serving institutional borrowers.

Share this term

Related Terms

Overcollateralization

Requiring borrowers to deposit more collateral than the amount they're borrowing.

Lending Protocol

A DeFi application that lets you lend your crypto to earn interest or borrow against your holdings.

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

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.

Explore More

Latest NewsCrypto NewsMarketsAnalysisFull Glossary

Stay ahead of the market

Get daily crypto analysis delivered to your inbox. No spam, unsubscribe anytime.