CRYPTO GLOSSARY

Overcollateralised

Describes a loan that is always smaller than the collateral backing it. DeFi loans work this way.

Overcollateralised in more detail

To borrow, you first deposit collateral. You can then borrow other tokens up to a fraction of its value. The loan is always smaller than the collateral, which is why it is called overcollateralised.

FROM LESSON 43 · 5 MIN READLending and borrowing in DeFiDeFi loans are backed by collateral, not credit checks. Learn how lending pools pay interest, what a health factor is, and how a price fall can liquidate a borrower.Read the lesson

All 128 terms · Checked against the lesson's sources on 10 October 2026.

BY EMAIL

The course by email

Five short emails to get you started, each built on one lesson. After that, one short email a month about what is new. No price tips and no hype.

Free. Unsubscribe any time. See our privacy notice.