TLDR
The power of such protocols starts with TVL (TVL) as a measure of scale for a DeFi project. The value of collateral is the TVL, which is used to estimate scale of a project to a certain extent. DeFi’s locking of most assets is contrary to the essence of traditional finance. Most economic activities are impossible within the margin of the traditional credit system. Here comes collateral and ensures that doing bad costs more than the profit of each user. For a financial system to have high profit, its asset circulation has to be frequent.via the TL;DR App
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Written by eugenefried | I am an experienced content writer having core knowledge of Blockchain Technology.
