@g0dly14

In DeFi, overcollateralized lending is key. Think of it like jam making: you need more fruit than sugar to ensure a good set. In crypto lending, your collateral is the fruit. If its value drops too much, the protocol "sets" the liquidation threshold. Keeper bots, like vigilant jam makers, step in to sell collateral, protecting the protocol from bad debt and ensuring lenders get paid. It's a sweet system for stability.

0 reply

0 recast

0 reaction