Why Overcollateralization Matters in DeFi
Why Overcollateralization Matters in DeFi
馃敀 DeFi's Collateral Conundrum
DeFi lending traditionally requires borrowers to deposit more collateral than they borrow for security. This overcollateralization can be challenging for borrowers to manage. New solutions are emerging to address this:
- Credit Delegation: Aave enables trusted users to borrow without collateral when backed by another user
- On-Chain Credit Scoring: AI models like Aimstrong assess borrower risk to enable lower collateral requirements
- Flash Loans: Uncollateralized loans that must be repaid within the same transaction
These innovations suggest DeFi lending is evolving toward more flexible collateral requirements while maintaining security.
鈿旓笍Why Overcollateralization Matters 鈿旓笍 In #DeFi overcollateralization = security, meaning borrowers must deposit more collateral than the amount they borrow. However, keeping up with #collateral #ratios and #liquidation risks is difficult for borrowers. To address this problem,
Trava Freight Launches One-Click DeFi Transaction Bundling
Trava Finance introduces Freight, a new DeFi automation tool that bundles multiple transactions into a single click. The feature streamlines operations like withdrawing and depositing across different protocols, reducing both time and gas fees. Key features of Trava Station: - Freight: Custom transaction sequences - Tramlines: One-click shortcuts - Junction: Automated execution - Portfolio: Asset tracking - Analytics and Recommendations The platform aims to simplify DeFi operations through its unified dashboard at [Trava Station](https://app.trava.finance/station).
Trava NFT Heuristic Farming Closure
Trava Finance has announced the closure of its NFT Heuristic Farming feature. This decision aims to redirect resources towards developing an AI-driven DeFi Station. Key points: - Heuristic Farming is now closed - No more rewards will be earned - User assets remain secure and withdrawable - Access via https://nft-app.trava.finance/heuristic-farming This closure follows recent deprecation of several farming pools, including VS-ETH, SWORD-ETH, and others, as part of Trava's efforts to streamline and focus on high-quality farming tokens.