What do you get by collateralizing in DeFi (risks of DeFi collateralized lending)
What do you get by collateralizing in DeFi As the rise of decentralized finance
What do you get by collateralizing in DeFi As the rise of decentralized finance (DeFi) makes people start considering how to collateralize on DeFi platforms. From this perspective, users can lend their digital assets to anyone who wants to use DeFi protocols. These types of products include mainstream cryptocurrencies like Ethereum, Bitcoin, and Litecoin, and can be utilized to maximize returns by using DeFi protocols as a tool. Over time, various types of user participation activities have also emerged in the DeFi field, such as Compound, Aave, Curve, MakerDAO, etc. However, the current DeFi projects are still in the early stages of development, but with significant room for growth. (decrypto)
Risks of DeFi Collateralized Lending
According to OKLink data from Euro Cloud Chain, the current total locked value of DeFi protocols on Ethereum is approximately 3.98 billion USD. Among them, Maker, Compound, and other lending projects occupy the largest share; Curve platform has a total locked value of 1.28 billion USD; Synthetix platform has a total locked value of 897 million USD.
With the rise and development of Ethereum DeFi applications, more and more institutions and investors are starting to enter the asset collateralized lending market on the Ethereum blockchain. And the expanding scale of this market also means more financial service providers are joining the industry.
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