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> One such example was for me when I fell on hard times and had to borrow on Aave to provide for the family Can you explain how that worked? Aave loans are ove
by mudrockbestgirl 4y ago
> One such example was for me when I fell on hard times and had to borrow on Aave to provide for the family
Can you explain how that worked? Aave loans are overcollateralized, so doesn't that mean you actually had capital available? That seems very different from a regular loan where you don't need liquid collateral since it's tied to your identity / credit score.
- egorfine 4y agoYep, I had some bitcoins to put up as collateral. Didn't want to sell it. Re: regular loan: see, I live in a country other than the US.
- mudrockbestgirl 4y ago"I have assets but I don't want to sell them" is very different from "I need a loan to provide for my family" - the latter is what banks typically provide, U.S. or not, while the former is just a financial instrument to manage exposure. You didn't have hard times, BTC is quite liquid, you just wanted to keep the exposure.
- egorfine 4y ago> banks typically provide, U.S. or not or not. Very much not. So DeFi protocols were my only option. > you just wanted to keep the exposure Correct.