While liquidations are saved for last because of the limited opportunity, it’s important to recognize liquidations are a key part of the crypto-lending ecosystem and critical to the system’s efficiency. Crypto functions as a fantastic collateral because of its ease of sale and liquidity. In comparison to a mortgage, in which a foreclosure and liquidation is an extremely lengthy process, crypto liquidations take mere seconds. As the crypto industry continues to grow, the lending ecosystem is going to remain an absolutely pivotal piece in its success story.
In the immediate term, however, this ecosystem offers a number of unique opportunities for crypto participants to earn yield, gain liquidity and increase the productivity of their assets.
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