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That's a lot of money being used in defi (whatever that means) but do you have a single example of financing through defi? Financing means providing borrowers w
by lottin 5y ago
That's a lot of money being used in defi (whatever that means) but do you have a single example of financing through defi? Financing means providing borrowers with resources (such as money) that they don't already have. I think you'll have a hard time finding examples, because it turns out financing requires the ability to seize assets from a defaulting borrower, an ability which defi lacks.
- diamond559 5y agoThat's just untrue, all borrowers from defi apps are required to be overcollateralized. The ability to pull from their collateral in case of a default is built into the smart contract.
- lottin 5y agoOf course, but that's not financing. If they post more collateral than the amount they're borrowing, the net amount borrowed is < 0.