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overcollateralized loans

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What is Overcollateralization in Crypto Lending?
Crypto Loan

What is Overcollateralization in Crypto Lending?

Overcollateralization is a fundamental crypto lending principle, whereby borrowers pledge more collateral than the value of the loan they seek. In other words, the collateral provided by the borrower exceeds the amount of the loan, creating a buffer or cushion for the lender

  • Cwallet
Cwallet, Emmanuel Olaoluwa May 3, 2024 • 5 min read
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