One interesting feature of using cryptocurrencies as collateral is that because cryptocurrencies have relatively large volatility, they are over-collateralized, such as Helio's HAY.

For example, if I give $100 worth of BNB, the platform will only lend me a maximum of 66 HAY coins. The other value of the collateral is to buffer them and maintain the HAY currency at the USD1-to-1 ratio.

As long as there is sufficient liquidity for BNB coins in the market and sufficient collateral, there will be no insolvency.

This mechanism has always been very effective. Let’s look at MakerDAO’s DAI, which is also over-collateralized. Even in the 312 incident, when Ethereum fell by more than 50% in a single day, DAI can still maintain the price, so DAI’s liquidation mechanism is effective, and the link is relatively safe and stable. High degree of program. #HAY