Borrowing in DeFi involves locking approved collateral to mint or draw assets, paying stability fees until the position is closed. Kensetsu vaults on SORA apply governance-defined collateral ratios and liquidation procedures to keep the system solvent while providing access to KUSD or other approved assets.
Borrowing
DefiTaking on debt against posted collateral using smart contracts that enforce repayment and liquidation rules.
Sections
Definition
Borrowing in DeFi involves locking approved collateral to mint or draw assets, paying stability fees until the position is closed. Kensetsu vaults on SORA apply governance-defined collateral ratios and liquidation procedures to keep the system solvent while providing access to KUSD or other approved assets.