DeFi ⚡️ loans. What are they? Find out here ⤵️
. As we'll soon see, these are truly unique additions to the growing decentralized finance stack.Most of us understand how a regular loan works. Still, it's worth reiterating so that we can make the comparison later.is a loan where you don't need to put forward any collateral. In other words, there isn't an asset you agree that the lender can have if you don't repay the loan. For example, suppose that youwant a $3,000 gold chain with the Binance logo hanging from it.
Bob's your good friend, so he didn't leverage a fee when he lent you the $3,000. Not everyone will be so kind – but, then again, why should they be? Bob trusts you to pay him back. Another person might not know you, so they don't know if you're going to run off with their money.