Lending, borrowing and liquidations: key words

Assets locked up as security for a loan. If the loan is not repaid, the lender can take them. Source

Secured by collateral worth more than the loan. DeFi loans are, because lenders can't check who borrowers are. Source

A set of smart contracts holding tokens that lenders supply and borrowers borrow from. Source

The share of a pool that is lent out: total borrowed divided by total supplied. Source

The point on a rate curve above which the borrow rate rises much faster. Source

An interest rate that keeps changing as the pool's utilisation changes. Source

The share of borrowers' interest that a protocol keeps for its treasury instead of passing it to lenders. Source

The most you can borrow, as a percentage of your collateral's value. At 75%, $1,000 of collateral lets you borrow $750. Source

The percentage of collateral value at which a loan counts as under-collateralised and can be liquidated. It is set above the LTV on Aave V3. Source

Aave V3's safety measure for a loan: collateral value times liquidation threshold, divided by debt. Below 1, the loan can be liquidated. Source

Repaying part or all of an under-collateralised loan with the borrower's collateral, done by outside liquidators or the protocol. Source

Extra collateral a liquidator receives on top of the value of the debt it repays. It is the borrower's cost. Source

The most of a loan that can be repaid in a single liquidation. Source

A loan with no collateral that must be borrowed and repaid within one transaction. Source

A loan worth more than its collateral, so liquidating it cannot repay it in full. Source

Using borrowed tokens as collateral for another loan. It makes leverage in DeFi hard to measure. Source