What is the role of collateralization ratio in cryptocurrency lending?

1 answers

• Mar 22, 2022 · 3 years ago
  In the world of cryptocurrency lending, the collateralization ratio is a key factor that determines the loan-to-value ratio and the risk associated with the loan. At BYDFi, we understand the importance of collateralization ratio and ensure that our borrowers maintain a healthy ratio to protect both parties involved. A higher collateralization ratio provides more security to the lender, reducing the risk of default. It also allows borrowers to access larger loan amounts and enjoy lower interest rates. However, it's important to note that the collateralization ratio may vary depending on the platform or exchange you choose for lending. Make sure to do your research and choose a reputable platform that offers fair terms and conditions for lending.
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