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Not sure how BlockFi works exactly but most lending DeFi apps have really high collateral requirements and liquidate positions in case of violation of collatera
by tcgv 5y ago
Not sure how BlockFi works exactly but most lending DeFi apps have really high collateral requirements and liquidate positions in case of violation of collateral requirements charging a penalty to close open positions early and ensure protocol assets are preserved before a "default" event can ever happen.
They're not really "capital efficient".
- xur17 5y agoIf you have some time, this [0] is a pretty good write up of a number of different cefi lending platforms. The part I find most interesting is that most places lend to Genesis Trading to generate most of their return, in some cases also lending out smaller portions themselves. [0] https://prohashing.com/guides/earning-interest-on-crypto https://prohashing.com/guides/earning-interest-on-crypto