#overcollateralization

Defi Losing Track of Its Core Vision as It Gradually Resembles the Very Idea It Aspired to Change

As defi continues to expand, it risks embracing the very ideology it initially sought to reject as the primary beneficiaries of this new financing paradigm are those who already own digital assets. Replacing Intermediaries Doesn’t Directly Improve Finance When it comes to financial products and solutions, almost everything comes with a catch, be it exceptional returns on investments or low…

Over-Collateralization In DeFi Has Run Its Course

Obtaining a loan through decentralized finance democratizes access to financial services and products. Unfortunately, the industry suffers from a rather steep over-collateralization requirement, making this option unfavorable. I feel like everyone should be able to trade the performance of their tokenized cash flow without posting additional collateral.  The DeFi Lending Over-collateralization…