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Collateral Tokens
Crypto GlossaryIn cryptocurrency, collateral tokens are used as a risk mitigation asset when borrowing other types of crypto tokens.Just like with collateral used in traditional finance, collateral tokens serve as a risk-mitigating asset for lenders when borrowers…
Collateral
Crypto GlossaryCollateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan.Collateral is one of the most important terms in today’s financial world. Collateral represents any asset that is offered as security…