Collateralized Borrowing

  • Borrowers can deposit tokenized RWAs (e.g., real estate NFTs, tokenized commodities) as collateral to borrow capital.

  • Loans will be over-collateralized to manage risk, ensuring that borrowers must maintain a minimum collateralization ratio (e.g., 125%-150%, depending on the asset class).

  • Collateral will be liquidated automatically if its value drops below a set threshold, protecting lenders.

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