DeFi Elevate, is not just any project, but a movement, each progression we make, can only happen with the support of the community. With the rise of AI and Decentralized Finance, we plan to use these technologies and Ideas to build something great. We plan to improve liquidity, unlock new capital markets, and support inclusive financial innovation, which is part of our 3 pillar strategy
Pillar 1: Liquidity Provision
Pillar 2: ICO Investment Support
Pillar 3: Lending & Borrowing Innovation
Overview
Introduction
What is under-collateralized lending/borrowing?
Under-collateralized (or lightly-collateralized) lending in DeFi refers to loans where the borrower pledges less collateral than the value of the loan (or in some cases none at all). In contrast, traditional DeFi lending requires users to deposit assets worth more than the loan (over-collateralisation) to protect lenders.
Because the collateral is insufficient to cover the full loan value in the event of default, under-
collateralised lending introduces additional risk. These loans depend instead on other risk-mitigation tools such as credit assessments, on-chain reputation of a wallet, trusted borrower pools, or real-world asset tokenisation.
In the DeFi world, this model opens up access from two angles:
Borrowers who don’t have large crypto holdings (so can’t post large collateral) can still access financing.
Lenders can deploy capital more efficiently, since assets are not locked up as collateral in the same way.
Over-collateralised lending (e.g., you deposit $150 to borrow $100) is inherently capital-inefficient: assets are locked rather than deployed.
In short: under-collateralised lending aims to bridge the gap between DeFi’s traditional collateral-locked model and more credit-based borrowing in traditional finance, by leveraging blockchain tools (wallet history, tokenised assets, governance/staking for trust) to enable more capital-efficient borrowing.
Core Pillars