Tag: overcollateralization

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Jan, 30 2026

What Is Collateralization in DeFi? A Clear Guide to How It Works and Why It Matters

Collateralization in DeFi lets you borrow crypto by locking up more value as security. It's trustless, global, and fast-but risky during market crashes. Learn how it works, why overcollateralization is needed, and how to avoid liquidation.