Notum logo

Glossary

Blog

Select (A-Z)

#

a

b

c

d

e

f

g

h

i

j

k

l

m

n

o

p

q

r

s

t

u

v

w

x

y

z

Collateral

Collateral is a digital asset, typically a cryptocurrency or token, that a user locks into a smart contract as security when participating in DeFi activities or borrowing against it. It serves as a guarantee for lenders, ensuring that in case of default, they can seize the collateral to cover losses or repay the loan.

Related Words