No credit history, no approval process—how do you borrow money on-chain?
My understanding: the health factor changes with prices. It goes down if the collateral price falls or the price of the borrowed asset rises.
The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so even when you borrow up to the limit, there’s still some buffer before liquidation.
$AAVE is the governance token of the on-chain lending protocol Aave.
Market conditions can change in an instant. Make your own judgment.
My understanding: the health factor changes with prices. It goes down if the collateral price falls or the price of the borrowed asset rises.
The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so even when you borrow up to the limit, there’s still some buffer before liquidation.
$AAVE is the governance token of the on-chain lending protocol Aave.
Market conditions can change in an instant. Make your own judgment.