Collateralization

By: WEEX|2024/10/24 08:14:14

Collateralization is the process of securing a loan by locking up assets as collateral. In the cryptocurrency space, collateralization is essential for decentralized lending platforms, where users can borrow funds by depositing their cryptocurrencies into a smart contract. The value of the collateral must typically exceed the loan amount to account for the volatility of the cryptocurrency markets.

For example, users on platforms like Aave or Compound can borrow stablecoins by collateralizing their ETH or other crypto assets. If the value of the collateral falls below a certain ratio, the borrower may face liquidation, meaning their collateral is sold off to cover the debt. Collateralization allows users to access liquidity without selling their crypto, but it also carries the risk of losing the collateral if market conditions deteriorate.

Crowdloan Chain Split

Where Is Cryptocurrency Legal? A Global Map for 2025

Discover which countries are crypto-legal and friendly in 2025. Our guide covers global regulations to help you invest and operate safely.

WEEX|2025/07/18 09:32:02

What are Tokenized US Stocks: How They Work, Models, and Future Development

Tokenized US stocks are digital versions of real stocks on a blockchain. This guide covers their history, how they work, different models, and future.

WEEX|2025/07/18 09:08:28

Limoverse (LIMO) to Launch on WEEX with LIMO USDT Spot Pair

Limoverse (LIMO) will be listed on WEEX, and the LIMO USDT spot trading pair will be available soon. As a Web3-powered health and wellness ecosystem, Limoverse (LIMO) integrates blockchain innovation into lifestyle rewards, offering users real utility with its $LIMO token.

WEEX|2025/07/18 05:40:30

RUDI USDT Trading Now Available on WEEX Spot

WEEX is excited to list RUDI on spot trading, with RUDI USDT trading kicking off July 17, 2025 at 10:00 UTC. Inspired by Elon Musk’s Grok AI mascot, RUDI is a high-volume Solana-based meme token gaining rapid traction.

WEEX|2025/07/18 03:18:44

Hyperion (RION) Debuts on WEEX Spot – RION USDT Pair Now Live

WEEX has added Hyperion (RION) to its spot trading platform, with RION USDT trading beginning July 17, 2025 at 10:00 UTC. Hyperion is a high-performance DeFi layer on Aptos, powered by parallel execution and backed by top investors.

WEEX|2025/07/18 03:10:35