Crypto lending reinvented: This solution can reduce liquidation and overcollateralization risks

Crypto lending reinvented: This solution can reduce liquidation and overcollateralization risks

Crypto lending remains one of the most important use cases in decentralized finance (DeFi). The three largest DeFi lending protocols — Aave, JustLend and Compound — collectively hold over $12 billion in total value locked (TVL), or 23% of the total TVL in DeFi.

Despite their popularity, DeFi lending platforms haven’t solved the most ardent problems, which are overcollateralization, high liquidation risk and actual asset ownership.