Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,070 trillion. Bitcoin is down by nearly 2% after intense seesawing this week. Ethereum increased by almost 2% over the past seven days. XRP lost more than 1% in value this week. Almost all altcoins are trading in the red, with a few exceptions. The DeFi sector decreased the total value of protocols (TVL)…
Overcollateralized Loan
Collateralized vs. Overcollateralized vs. Undercollateralized DeFi Loans
In decentralized finance (DeFi), collateralized loans are loans secured by collateral, which the borrower must deposit to the lender as a guarantee for the loan. The collateral is typically cryptocurrency and held in a blockchain smart contract. Overcollateralized loans are loans where the value of the collateral is greater than the loan's value. This means that the lender has a cushion of additional collateral to protect against potential losses in case the value of the collateral drops. On the other…
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2 weeks ago 
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What Are Overcollateralized DeFi Loans
Overcollateralized loans in the context of DeFi are loans where the borrower must provide collateral in an amount greater than the value of the loan itself. This collateral can be in the form of cryptocurrency assets such as Ethereum, Binance Coin, or other ERC-20 tokens or BNB BEP20 Tokens. For example, Alice wants to borrow $10,000 worth of Ethereum (ETH). However, she has $15,000 worth of ETH that she will put up as collateral. Alice can then use a DeFi platform…
Block Education
@BlockEducation
@BlockEducation
2 weeks ago 53 views
