Jotting down something—it's very short, takes just a few dozen seconds to read.
Why do on-chain loans require overcollateralization?
To be honest, when the health factor of a position on Aave falls below 1, liquidators can liquidate it.
Holders of $AAVE can vote on proposals such as Aave's risk parameters.
Knowledge can help you avoid pitfalls, but it can't replace risk management.
#AAVE
Don't take what I'm saying as investment advice.
Why do on-chain loans require overcollateralization?
To be honest, when the health factor of a position on Aave falls below 1, liquidators can liquidate it.
Holders of $AAVE can vote on proposals such as Aave's risk parameters.
Knowledge can help you avoid pitfalls, but it can't replace risk management.
#AAVE
Don't take what I'm saying as investment advice.
