Serafinasol
@serafinasol
Decentralized Lending and Borrowing: A Game-Changer in Finance Decentralized lending platforms like Aave, Compound, and MakerDAO are transforming traditional finance by enabling permissionless lending and borrowing. This article explains how these platforms work, the concept of over-collateralization, and the risks associated with smart contract vulnerabilities. It also explores the potential for under-collateralized loans and the role of credit scoring in DeFi.
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