Definition ∞ DeFi Credit Expansion describes the growth in the volume and scope of lending and borrowing activities within decentralized finance protocols. This expansion is driven by innovations in credit assessment, collateralization methods, and the introduction of new financial products. It represents a significant step towards a more mature and accessible decentralized credit market, moving beyond simple overcollateralized loans.
Context ∞ The ongoing DeFi credit expansion highlights a shift towards more capital-efficient lending models, presenting both opportunities and risks. Current discussions address the regulatory implications of uncollateralized loans and the need for robust risk management frameworks. Future developments will likely involve greater institutional participation and the integration of diverse credit assessment tools to support broader financial inclusion.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
