A few things to remember about decentralized lending:
1) The liquidation threshold for each type of collateral is usually higher than its loan-to-value ratio, so borrowing up to the limit still leaves some room before liquidation.
2) Major on-chain lending platforms use overcollateralization: the value you can borrow is less than the value of your collateral.
3) Borrowing rates are variable. When pool utilization approaches its limit, rates may rise significantly, so factor in this cost when borrowing long term.
Holders of $AAVE can vote on proposals concerning Aave’s risk parameters and other matters. Current price: 135.89.
#AAVE
Personal notes. Make your own decisions when trading.
1) The liquidation threshold for each type of collateral is usually higher than its loan-to-value ratio, so borrowing up to the limit still leaves some room before liquidation.
2) Major on-chain lending platforms use overcollateralization: the value you can borrow is less than the value of your collateral.
3) Borrowing rates are variable. When pool utilization approaches its limit, rates may rise significantly, so factor in this cost when borrowing long term.
Holders of $AAVE can vote on proposals concerning Aave’s risk parameters and other matters. Current price: 135.89.
#AAVE
Personal notes. Make your own decisions when trading.
