DeFi and RWA Integration

Borrowing

Borrowing is receiving money or another asset under an agreement to repay it according to specified terms. In blockchain based markets, borrowing m...

Collateral

Collateral is an asset pledged or otherwise provided to support a loan or financial obligation. If the borrower fails to meet the agreed obligation...

Collateral Management

Collateral management is the process of monitoring, valuing and administering assets used to support financial obligations. It can include checking...

Collateralization Ratio

A collateralization ratio compares the value of collateral with the value of the debt or obligation it supports. For example, $150 of collateral su...

Composability

Composability is the ability of different blockchain based applications and assets to interact and be combined with one another. A token supported...

Credit Underwriting

Credit underwriting is the process of assessing whether a borrower is likely to repay a loan and under what terms credit should be provided. It can...

Decentralized Finance (DeFi)

Decentralized Finance, usually shortened to DeFi, refers to financial applications and markets built using blockchain based infrastructure and smar...

Lending Protocol

A lending protocol is a blockchain based system that facilitates lending and borrowing using smart contracts. Depending on the design, users may su...

Liquidation

Liquidation is the process of selling or taking control of collateral or closing a position when specified financial requirements are no longer met...

Liquidation Threshold

A liquidation threshold is the point at which a collateralized position becomes eligible for liquidation according to the rules of the loan or prot...

Liquidity Pool

A liquidity pool is a collection of assets supplied to a smart contract to support activities such as trading, lending or other blockchain based fi...

Loan to Value (LTV)

Loan to Value, usually shortened to LTV, compares the amount borrowed with the value of the asset or collateral supporting the loan. For example, b...

Onchain Lending

Onchain lending refers to lending activity in which important parts of the lending process are recorded, managed or executed using blockchain based...

Overcollateralization

Overcollateralization means providing collateral worth more than the amount being borrowed or the obligation it supports. For example, a borrower m...

Real World Asset Collateral

Real world asset collateral is collateral whose value ultimately comes from an asset or financial claim outside the blockchain. This could include...

RWA Protocol

An RWA protocol is a blockchain based platform or set of smart contracts designed to connect real world assets or financial claims with onchain fin...

Tokenized Collateral

Tokenized collateral is an asset or financial interest represented using blockchain based tokens and used to secure a loan or another financial obl...

Undercollateralized Lending

Undercollateralized lending occurs when the value of collateral provided is lower than the amount borrowed, or when a loan relies substantially on...