【Quick explainer】Why do you need to overcollateralize when borrowing on-chain?
The liquidation threshold for each type of collateral is usually higher than its loan-to-value ratio, so even when you borrow up to the limit, there’s still some room before liquidation.
Holders of $AAVE can vote on proposals such as Aave’s risk parameters. Current price: 131.64.
Understanding how it works helps you make informed decisions; it’s not for predicting market movements.
#AAVE
The liquidation threshold for each type of collateral is usually higher than its loan-to-value ratio, so even when you borrow up to the limit, there’s still some room before liquidation.
Holders of $AAVE can vote on proposals such as Aave’s risk parameters. Current price: 131.64.
Understanding how it works helps you make informed decisions; it’s not for predicting market movements.
#AAVE