Can DeFi lending work without liquidation?
There are many blockchain lending protocols, but they all have one thing in common: liquidation. 😱 A liquidation happens when you borrow money on a protocol like Aave, and the value of your collateral goes down. If prices go down far enough, your collateral gets sold to pay off your debt. Even if the price recovers, your collateral is gone, and your position goes to zero — or close to it.Don’t lose your collateral to DeFi liquidationLiquidations are in place to remove risk from the lender, a...
Can DeFi lending work without liquidation?
There are many blockchain lending protocols, but they all have one thing in common: liquidation. 😱 A liquidation happens when you borrow money on a protocol like Aave, and the value of your collateral goes down. If prices go down far enough, your collateral gets sold to pay off your debt. Even if the price recovers, your collateral is gone, and your position goes to zero — or close to it.Don’t lose your collateral to DeFi liquidationLiquidations are in place to remove risk from the lender, a...
