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March 6, 2026
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Glossary

Collateral

Collateral

Assets pledged as security for a loan in DeFi protocols; if the borrower defaults, the collateral is liquidated to repay the lender.

Frequently Asked Questions: Collateral

What is Collateral?

Assets pledged as security for a loan in DeFi protocols; if the borrower defaults, the collateral is liquidated to repay the lender.

Why is Collateral important in cryptocurrency?

Collateral is a key concept in the cryptocurrency and blockchain ecosystem. Understanding Collateral helps investors, developers, and users navigate the digital asset space more effectively.

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