7 ms·

That'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

That'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 ago
Of course, but that's not financing. If they post more collateral than the amount they're borrowing, the net amount borrowed is < 0.