Lending Mechanics
Overcollateralization
Requiring borrowers to deposit more collateral than the loan amount. Most DeFi loans require 150-200% collateralization — you must deposit $150-$200 in crypto to borrow $100.
Why Overcollateralization Matters
Understanding overcollateralization is essential for anyone participating in crypto lending or DeFi markets. This concept directly impacts how you evaluate platforms, manage risk, and optimize returns.
Master Crypto Lending
Get weekly deep-dives on concepts like overcollateralization, platform analysis, and market trends. Free, no spam.