DeFi Lending Explained: LTV, Collateral & Liquidation (In 3 Minutes)
DeFi lending explained: how collateralized borrowing works, what LTV (loan-to-value) means, why liquidation thresholds exist, and the biggest mistake—borrowing too close to the limit. You’ll also learn how variable rates and “looping” can amplify risk.
Educational only — not financial advice. DeFi involves risks (volatility, liquidation, smart-contract bugs, bridge risk, user error). Examples use common DeFi patterns and may occasionally reference fast-moving ecosystems like Sonic for clarity.
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