> Lots of defi has no counterparty risk. Much of it is over collateralised and managed by smart contacts. There is no such thing as overcollateralization. High

> Lots of defi has no counterparty risk. Much of it is over collateralised and managed by smart contacts. There is no such thing as overcollateralization. Higher levels of collateral are required against higher levels of risk. If one party is required to post "excess" collateral, that's because the risk is greater than whatever you think it is. The very fact that certain DeFi projects dealing in things like stablecoins require obscene collateral is proof that there is tremendous risk...and the high levels of collateral are an attempt to mitigate some of that.