🔥 DeFi Deep Dive: Decentralized Lending
On-chain lending has no credit checks. Borrowers are simply anonymous addresses, so protocols rely on collateral being worth more than the loan to reduce the risk of bad debt.
Borrowing rates are variable. When pool utilization approaches its limit, rates can rise significantly, so factor this cost into long-term borrowing.
$AAVE is the governance token of the decentralized lending protocol Aave. Currently: 156.13.
Got anything to add? Share it in the comments.
On-chain lending has no credit checks. Borrowers are simply anonymous addresses, so protocols rely on collateral being worth more than the loan to reduce the risk of bad debt.
Borrowing rates are variable. When pool utilization approaches its limit, rates can rise significantly, so factor this cost into long-term borrowing.
$AAVE is the governance token of the decentralized lending protocol Aave. Currently: 156.13.
Got anything to add? Share it in the comments.