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DeFi Protocol Mechanics, Decoded
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lending-borrowing

Flash Loan
An uncollateralized loan that must be borrowed and repaid within the same blockchain transaction; if the principal and fee aren't repaid before the transaction ends, the entire transaction automatically reverts as if it never happened.
intermediate
Over-Collateralization
A mechanism requiring the value of collateral a borrower deposits to exceed the amount actually borrowed, allowing lenders to recover funds through collateral liquidation even in the event of default, without relying on credit checks.
beginner