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The State of Undercollateralized DeFi Lending - Delphi Digital Unsecured lending is one of the best ways to unlock capital efficiency in DeFi, and various protocols have tried their hand at developing robust systems to earn the trust of crypto lenders In this report, we look at the top three undercollateralized lending protocols and how they’ve fared over the past year
The Case for Avici - zuccys zetetic Complexity Numerous iterations of undercollateralized lending have been tried throughout crypto’s existence, none of which have worked to serve individuals Protocols like Wildcat Finance 19 and Maple Finance 20 have found some PMF by providing undercollateralized loans to vetted and somewhat trusted crypto institutions
How On-Chain Credit Scores Are Enabling Undercollateralized Crypto Loans Decentralized finance (DeFi) has long been constrained by its reliance on overcollateralized lending models Borrowers have typically needed to lock up more value in crypto assets than they receive in loans, a system that, while effective at mitigating risk, severely limits capital efficiency and excludes users without substantial digital holdings Today, the emergence of on-chain credit