Cryptocurrency Q&A
What is DeFi lending collateral?
What is DeFi lending collateral?
SophieJones
Sun Dec 15 2024
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7 answers
1202
I'm interested in understanding DeFi lending collateral. Could you explain what it is and how it works in the context of decentralized finance?
7 answers
Eleonora
Tue Dec 17 2024
The borrower initiates the process by depositing their cryptocurrency into a liquidity pool within a DeFi protocol.
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DigitalWarrior
Tue Dec 17 2024
Crypto borrowing operates on a specific mechanism.
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RubyGlider
Mon Dec 16 2024
This excess collateral ensures that the borrower has enough funds to cover the loan in case of default.
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CryptoConqueror
Mon Dec 16 2024
The practice of depositing more collateral than the borrowed amount is known as over-collateralization.
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CosmicDreamWhisper
Mon Dec 16 2024
This deposit serves as collateral for the amount they intend to borrow.
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