🔥 DeFi Essentials: Decentralized Lending
Decentralized lending doesn’t involve credit checks. Borrowers are simply anonymous addresses, so protocols have to rely on collateral being worth more than the loan to manage the risk of bad debt.
Don’t borrow up to your limit. Keep your health factor comfortably above 1 to leave room for price fluctuations.
Holders of $AAVE can vote on proposals regarding Aave’s interest rates, collateral parameters, and more.
If you know someone who’s new to this, feel free to share this with them.
Volatility can be significant, so use leverage responsibly.
Decentralized lending doesn’t involve credit checks. Borrowers are simply anonymous addresses, so protocols have to rely on collateral being worth more than the loan to manage the risk of bad debt.
Don’t borrow up to your limit. Keep your health factor comfortably above 1 to leave room for price fluctuations.
Holders of $AAVE can vote on proposals regarding Aave’s interest rates, collateral parameters, and more.
If you know someone who’s new to this, feel free to share this with them.
Volatility can be significant, so use leverage responsibly.