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Ethereum

The Long and Short of Aave

298 Views02 Dec 2022 07:39
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SUMMARY
  • Lending and borrowing in DeFi follows the same basic principles as it does in traditional finance: I supply some asset as collateral and I am able to borrow a certain amount of some other asset.
  • However, this being DeFi, there are some important differences from TradFi.
  • The most important is that the protocol has no way of knowing how trustworthy I am, and thus will require any loan to be overcollateralized.
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  • The Long and Short of Aave
    02 Dec 2022
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