The Long and Short of Aave
368 Views01 Dec 2022 23:39
Syndicated
- 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.
Top Unpaywalled Insights
More »Discussions
(Paid Plans Only)