Leverage With DeFi Lending
Yamp offers a much higher max leverage based on the same risk tolerance.
Other lending platforms require borrowers to over-collateralize, putting on average, at risk over 300% of the amount borrowed, making leverage positions risky and a non-viable financial product.
Yamp’s collateralization model offers much less risk to the borrower’s collateral (with no risk of default to the lender). This allows investors to achieve much higher leverage for a given risk tolerance.
Leverage is a popular feature on centralized exchanges like Binance, but is virtually unheard of in defi.
Yamp allows leverage of 10x or higher on borrowed positions.