))
Don't Get Liquidated! - Explaining Over Collateralized DeFi Loans
Manage episode 337466163 series 3381606
Konten disediakan oleh Part Time Economist. Semua konten podcast termasuk episode, grafik, dan deskripsi podcast diunggah dan disediakan langsung oleh Part Time Economist atau mitra platform podcast mereka. Jika Anda yakin seseorang menggunakan karya berhak cipta Anda tanpa izin, Anda dapat mengikuti proses yang diuraikan di sini https://id.player.fm/legal.
Since DeFi protocols can't perform credit checks or assess the credit worthiness of borrowers using the same tools of traditional finance, they typically rely on loan over-collateralization to ensure that lenders will be able to receive their funds back. When borrowers' outstanding loan balances exceed their loan collateral value, they are "liquidated" by third parties that swoop in, repay the loan, and make a profit. In today's post, I'll explain why overcollateralized loans are essential to DeFi, how over-collateralized loans work, and how liquidations function. #crypto #defi #comp
54 episode
Bagikan
