Folks, this is something you really need to understand: decentralized lending!
The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so even when you borrow the maximum amount, there’s still some room before liquidation.
The health factor changes with price movements: it decreases when the collateral price falls or the price of the borrowed asset rises.
$AAVE is the governance token of the on-chain lending protocol Aave.
Save this and take your time reading 👇
#AAVE
The liquidation threshold for each type of collateral is generally higher than its loan-to-value ratio, so even when you borrow the maximum amount, there’s still some room before liquidation.
The health factor changes with price movements: it decreases when the collateral price falls or the price of the borrowed asset rises.
$AAVE is the governance token of the on-chain lending protocol Aave.
Save this and take your time reading 👇
#AAVE