Why do you need to overcollateralize when borrowing on-chain? Don't worry, our class study rep has the answer:
Most mainstream decentralized lending platforms use overcollateralization: the value you can borrow is less than the value of your collateral.
Your health factor changes with price fluctuations: it decreases when the price of your collateral falls or the price of the asset you borrowed rises.
The most expensive thing in this space isn't the transaction fees—it's the tuition you pay for not understanding the rules.
$AAVE 148.06（-2.07%）
Most mainstream decentralized lending platforms use overcollateralization: the value you can borrow is less than the value of your collateral.
Your health factor changes with price fluctuations: it decreases when the price of your collateral falls or the price of the asset you borrowed rises.
The most expensive thing in this space isn't the transaction fees—it's the tuition you pay for not understanding the rules.
$AAVE 148.06（-2.07%）