Crypto trivia 📚 Decentralized lending
Each type of collateral has its own loan-to-value ratio (LTV). For example, with an LTV of 75%, assets worth $100 can be used to borrow up to $75.
In lending protocols like Aave and Compound, depositors put assets into a pool to earn interest, while borrowers borrow assets from that same pool.
There’s no exam for this lesson, but the market may give you a surprise quiz.
$AAVE is the governance token of the decentralized lending protocol Aave. It’s currently at 167.46.
#AAVE
Each type of collateral has its own loan-to-value ratio (LTV). For example, with an LTV of 75%, assets worth $100 can be used to borrow up to $75.
In lending protocols like Aave and Compound, depositors put assets into a pool to earn interest, while borrowers borrow assets from that same pool.
There’s no exam for this lesson, but the market may give you a surprise quiz.
$AAVE is the governance token of the decentralized lending protocol Aave. It’s currently at 167.46.
#AAVE