No credit history or approval required—how do you borrow money in DeFi?
During periods of sharp market volatility, keep an eye on your health factor and, if necessary, promptly add collateral or repay part of your loan.
In short, decentralized lending doesn’t conduct credit checks. Borrowers are simply anonymous addresses, so protocols have to rely on collateral being worth more than the loan to control the risk of bad debt.
$AAVE is the governance token of the decentralized lending protocol Aave.
#AAVE
During periods of sharp market volatility, keep an eye on your health factor and, if necessary, promptly add collateral or repay part of your loan.
In short, decentralized lending doesn’t conduct credit checks. Borrowers are simply anonymous addresses, so protocols have to rely on collateral being worth more than the loan to control the risk of bad debt.
$AAVE is the governance token of the decentralized lending protocol Aave.
#AAVE
