The Future Of DeFi Lending? Undercollateralized Loans Explained!
Are crypto loans without collateral possible in DeFi? Introducing undercollateralized loans! An undercollateralized loan refers to a loan that is not fully / at all collateralized. Should the loan default, the collateral (if any) will not be able to fully cover the principal. By lowering or even removing the need for collaterals, crypto loans can become more accessible to a wider pool of audiences.
Links Mentioned
Guide to crypto loans - • What Are Crypto Loans? Is Crypto Loan...
Article on undercollateralized loans - https://www.coingecko.com/buzz/underc...
Wing Finance - https://www.coingecko.com/en/coins/wi...
Easy Fi - https://www.coingecko.com/en/coins/ea...
Timestamps:
00:00 History of lending and borrowing
00:50 Introduction of DeFi lending
02:22 What are undercollateralized loans?
02:50 Popular methods of undercollateralized lending
3:02 - Flash loans
3:52 - 3rd party risk assessment
5:28 - Crypto native credit scores
7:30 - Other methods of undercollateralized loans
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#DeFi #lending #loans #uncollateralized