What is a decentralised lending platform?
Debt is an essential tool in DeFi. As DeFi applications typically operate without Know Your Customer (KYC), the borrower’s debt must be over-collateralized. Hence, a borrower must collateralize (lock) 150% of the value that the borrower wishes to lend out. The collateral acts as a security to the lender if the borrower doesn’t pay back the debt.