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Credit score danger is a part of nearly each monetary asset in conventional markets, however not so in DeFi. All the things from mortgages to CME corn futures, German bunds and Amazon present playing cards has an embedded credit score part (and price). In DeFi, nevertheless, your credit score document is completely irrelevant. Your borrowing energy in AAVE, for instance, is set solely by the worth of the collateral you set in. If it falls past the brink and the good contract features appropriately, your place is liquidated. There isn’t a recourse, nobody to name, no place to elucidate your state of affairs.
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