DeFi May Trigger a Wave of Unsecured Lending

Unsecured loans realized through credit authorization means borrowers utilize the idle credit lines of DeFi liquidity providers to borrow without providing additional collateral. For liquidity providers, unsecured loans are a method to increase passive income by earning through loan interest rates. Borrowers only need to pay higher loan interest rates to borrow without providing collateral. In traditional finance, unsecured loans occupy a significant proportion in lending activities. Now it's DeFi's turn.