DeFi has recently become a massive force in the crypto space.
There is now $800M of REAL value locked into Defi contracts, which equates to nearly 1/10th of all ETH's value locked in Defi. I repeat, one-tenth. How is this not talked about more?
Up until recently, all loans on DeFi had to be OVERcollateralized. This means to borrow $1, you need to deposit $1.50. It's essentially margin trading.
Until we can start collateralizing assets, being overcollateralized as a lending model just didn't make any sense.
But now there is another option. With Zero Collateral Protocol, you can no UNDER collateralize loans, all the way to zero collateral.
Hold up... How is this possible and why has the $400M monolith MakerDao not tried to do this already?
Chris and Ryan explain in under 10 minutes in the most recent podcast, starting at minute 24:00.
This is not a sponsored show, nor am I partnered with ZCP. I believe this is something INCREDIBLY powerful to come into the DeFi space and think the more people who know and support this mission, the stronger the crypto ecosystem can become.
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.