Collateralisation

Collateralisation allows individuals to unlock more from their assets. In essence, by offering collateral, they can then borrow more from a lender. If the borrower is unable to repay their loan or defaults on it, the lender can seize the asset that was offered as collateral.

When it comes to cryptocurrency, there are various decentralised applications (dapps), such as Tectonic, that allow users to collateralise their assets and borrow from the various pools on the protocol. Collateralisation is one of the most common practices in cryptocurrency and traditional finance (TradFi). It’s amongst the most popular ways to offer lenders insurance when taking up a loan.

Key Takeaway

Collateralisation refers to the practise of using one asset as insurance in order to borrow another asset or secure a loan.

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Market Cap

Market cap refers to the total dollar value of a cryptocurrency in circulation. It is calculated by multiplying the token price by the total number of tokens.

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Circulating Supply

Circulating supply is the amount of a cryptocurrency currently on the market. The number can grow or shrink for various reasons.

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TradFi

Traditional finance, or TradFi, is a conventional approach to financial activities that relies on established institutions, such as banks, insurance companies, investment companies, and stock exchanges.

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Collection Value

Collection Value is the aggregated monetary value of all the NFTs in a collection.

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NFT Sales Volume Index (7D)

The NFT Sales Volume Index (7D) shows the price and number of editions of a non-fungible token (NFT) collection sold over a 7-day (7D) period.

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Crypto Asset

Crypto assets are transferable digital representations of value made possible by cryptography and blockchain technology.

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24H Volume

24H Volume shows the number of a cryptocurrency’s tokens traded over a 24-hour time frame.

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7D

7D, short for seven days, refers to price data that has been collected for a cryptocurrency over a 7-day period.

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Floor Price

Floor Price is equal to the lowest-priced NFT in a collection.

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Gas (ETH)

Gas is the cost of a transaction on the Ethereum network.

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