Difference between revisions of "Lending"
Jump to navigation
Jump to search
Jimcrypted (talk | contribs) (First edit) |
Jimcrypted (talk | contribs) m |
||
| Line 3: | Line 3: | ||
To date, lending has been the leading DeFi use-case.<ref>https://defirate.com/projects/</ref> | To date, lending has been the leading DeFi use-case.<ref>https://defirate.com/projects/</ref> | ||
[[Category:Glossary]] | [[Category:Glossary]] | ||
<references /> | |||
[[Category:Lending]] | |||
Revision as of 05:28, 27 April 2022
DeFi allows any individual to take out or supply a loan without approval from a third party. The large majority of lending products use popular cryptocurrencies such as Ether ($ETH) to secure outstanding loans through over-collateralization. Thanks to the advent of smart contracts, maintenance margins, and interest rates can be programmed directly into a borrowing agreement with liquidations happening automatically should an account balance fall below a specified collateral ratio.
To date, lending has been the leading DeFi use-case.[1]