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Margin Optimization

Definition

Margin optimization refers to strategies and techniques employed to maximize the profit margin derived from financial operations, particularly in trading or lending digital assets. This involves carefully managing costs, pricing, and risk exposures to achieve the highest possible return on investment. In the context of decentralized finance, it can include adjusting collateral ratios, selecting optimal lending pools, or leveraging assets efficiently. The goal is to enhance profitability while mitigating potential losses.