Understanding this won't make me stronger overnight, but it can help me avoid a few rookie mistakes.
Today's topic: decentralized lending
Each type of collateral has its own loan-to-value ratio (LTV). For example, with an LTV of 75%, an asset worth $100 can be used to borrow up to $75.
Don't borrow up to the limit. Keep your health factor well above 1 to leave room for price fluctuations.
Holders of $AAVE can vote on proposals about Aave's risk parameters, among other things.
#AAVE
These are just my thoughts and may not be right. Please manage your own profits and losses.
Today's topic: decentralized lending
Each type of collateral has its own loan-to-value ratio (LTV). For example, with an LTV of 75%, an asset worth $100 can be used to borrow up to $75.
Don't borrow up to the limit. Keep your health factor well above 1 to leave room for price fluctuations.
Holders of $AAVE can vote on proposals about Aave's risk parameters, among other things.
#AAVE
These are just my thoughts and may not be right. Please manage your own profits and losses.