DeFi & Yield

What is over-collateralization in DeFi lending?

Over-collateralization in DeFi lending is the practice of locking collateral worth more than the amount you borrow, so the protocol stays protected if prices move against the loan. Because borrowers are typically anonymous, lending contracts rely on this surplus rather than credit checks. For example, you might deposit 150 worth of one asset to borrow 100 worth of another. If collateral value drops, the position can still be liquidated, and outcomes are never guaranteed. Qatobit does not run lending pools; it offers curated crypto indices built on documented methodology and monthly rebalancing. Read how it works.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.