Credit score danger is a part of nearly each monetary asset in conventional markets, however not so in DeFi. Every little thing from mortgages to CME corn futures, German bunds and Amazon reward playing cards has an embedded credit score element (and value). In DeFi, nonetheless, your credit score report is completely irrelevant. Your borrowing energy in AAVE, for instance, is decided solely by the worth of the collateral you place in. If it falls past the brink and the good contract capabilities appropriately, your place is liquidated. There isn’t a recourse, nobody to name, no place to elucidate your scenario.
