Knowledge Notes | Decentralized Lending
① When the health factor of a borrowing position on Aave falls below 1, the position can be liquidated by liquidators.
② Mainstream on-chain lending uses overcollateralization: the value you can borrow is less than the value of your collateral.
③ When markets are highly volatile, keep an eye on your health factor and, if necessary, promptly add collateral or repay part of your loan.
$AAVE 113.51(-7.82%)
① When the health factor of a borrowing position on Aave falls below 1, the position can be liquidated by liquidators.
② Mainstream on-chain lending uses overcollateralization: the value you can borrow is less than the value of your collateral.
③ When markets are highly volatile, keep an eye on your health factor and, if necessary, promptly add collateral or repay part of your loan.
$AAVE 113.51(-7.82%)