Why do you need to overcollateralize when borrowing on-chain? Many people can't answer!
Interest rates on lending protocols generally fluctuate with pool utilization: the higher the proportion of funds borrowed, the higher the borrowing and deposit rates tend to be.
The health factor changes with prices: if the collateral price falls or the price of the borrowed asset rises, the health factor will decrease.
Understanding the mechanics helps you make informed decisions; it's not for predicting price movements.
$AAVE 138.59（+2.12%）
Interest rates on lending protocols generally fluctuate with pool utilization: the higher the proportion of funds borrowed, the higher the borrowing and deposit rates tend to be.
The health factor changes with prices: if the collateral price falls or the price of the borrowed asset rises, the health factor will decrease.
Understanding the mechanics helps you make informed decisions; it's not for predicting price movements.
$AAVE 138.59（+2.12%）
