Decentralized Finance (DeFi)

Overcollateralization

Posting more collateral than the amount you borrow, such as $150 of crypto to borrow $100. DeFi lenders rely on it because they can't check borrowers' credit.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.