Demystifying DeFi Loans with the Undercollateralization

Source: Defi Pulse

Understanding DeFi Lending

The DeFi Lending and Borrowing Ecosystem

Source: Dappradar

◉ Centralized platforms

◉ Decentralized platforms

Overcollateralization and Under collateralization of Crypto Loan

⊛ Overcollateralization

⊛ Undercollateralization

  • Flash loans
  • Digital asset loans
  • NFT as collateral
  • Real-world asset loans
  • Personal network bootstrap
  • Off-chain credit integration
  • Crypto native credit scores
  • Third-party risk assessment

The problems of Overcollateralization

Paxo Finance Under collateralization Solution for Future

Magnificent Features of Paxo Finance for DeFi Lending and Borrowing:

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Paxo Finance

Paxo Finance

PAXO is a decentralized protocol that opens up under collateralized borrowing and lending options in the DeFi space.