What is Collateral?

In the crypto market, collateral refers to the crypto assets pledged as a borrower’s guarantee. By providing collateral, the borrower provides assurance that the loan will be paid back as defined by the repayment terms and conditions. When providing crypto collateral, borrowers have the opportunity to access fiat or stable coin funds on a DeFi platform such as Compound.

You May Also Like

Completed order
Cold wallet
– Advertisement –

Other Glossary Terms