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With fiat loans, you can pretty much get free money without anything being taken from you right away This is referred to as the liquidation mechanism. With defi loans, you pretty much have to give away the keys to your house if you want to use it as collateral (unless we’re talking flash loans which isn’t practical for anything but instant arbitrage).

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In the past months, there’s been an uptick in interest for #defi beyond margin trading, popularized by compound, maker vaults, and instadapp A detailed guide to help you navigate defi lending and borrowing protocols, highlighting its mechanisms, benefits, and the leading platforms. To start 2020 with the same innovation speed, the ethereum ecosystem is already looking to build new financial services for as many people as possible — and in defi, that implies unsecured loans

Most of the feasible solutions in under.