Collateral vs DeFi

Quick comparison to help you distinguish these two crypto terms.

Collateral
beginner
fundamentals

Collateral is cryptocurrency or other digital assets locked or deposited as security to guarantee performance of obligations, enable borrowing, or participate in blockchain protocols like staking and DeFi lending.

Read full definition
DeFi
beginner
strategy

A blockchain-based financial system enabling lending, borrowing, trading, and earning interest on cryptocurrency without traditional banks or intermediaries through automated smart contracts.

Read full definition
Browse full glossaryGet platform access