📋 DeFi｜Decentralized Lending
· Key point: Under Aave’s rules, the health factor is calculated by multiplying the value of each collateral asset by its liquidation threshold, adding the results, and dividing by the total value borrowed.
· Why: On-chain lending has no credit checks, and borrowers are just anonymous addresses. The protocol therefore relies on collateral being worth more than the loan to limit the risk of bad debt.
· Note: Keep an eye on your health factor during sharp market fluctuations. If needed, add collateral or repay part of your loan in advance.
$AAVE 130.59（-0.68%）
· Key point: Under Aave’s rules, the health factor is calculated by multiplying the value of each collateral asset by its liquidation threshold, adding the results, and dividing by the total value borrowed.
· Why: On-chain lending has no credit checks, and borrowers are just anonymous addresses. The protocol therefore relies on collateral being worth more than the loan to limit the risk of bad debt.
· Note: Keep an eye on your health factor during sharp market fluctuations. If needed, add collateral or repay part of your loan in advance.
$AAVE 130.59（-0.68%）
