Blocky saysDeFi lending pools let you supply assets to earn interest or borrow against collateral.
Protocols like Aave/Compound pool deposits; suppliers earn interest, borrowers take loans by posting over-collateralized assets (e.g. borrow $70 against $100). Rates adjust algorithmically with supply/demand. A health factor tracks how close a position is to liquidation — if collateral value drops too far, anyone can liquidate it to repay the loan. No credit checks; collateral is the trust.
Boss battleExplain why on-chain loans must be over-collateralized.
Example code
<!doctype html><html><head><meta charset="utf-8"></head>
<body style="background:#06040d;color:#e6e0ff;font-family:monospace;padding:20px"><pre>deposit $100 ETH → borrow $70 USDC
ETH price falls → health factor drops
too low → liquidated to repay the loan</pre></body></html>