Leveraged DeFi refers to decentralized finance strategies that involve borrowing assets to amplify potential investment returns or losses. This typically occurs on decentralized lending protocols where users collateralize existing assets to obtain loans. These loans are then used for further trading or yield farming, significantly increasing risk exposure.
Context
Leveraged DeFi activities are a substantial component of the decentralized financial ecosystem, attracting users seeking higher yields. However, these strategies carry considerable liquidation risks due to market volatility and smart contract vulnerabilities. News often reports on the outcomes of such high-risk, high-reward activities and their impact on various digital assets.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
