Overcollateralisation
German: Überbesicherung
Requiring collateral worth substantially more than the exposure, which substitutes for credit assessment where the borrower is pseudonymous.
Why people look this up
Credit readers asking why on-chain lending is capital-inefficient and whether undercollateralised models exist.
Auf Deutsch
Überbesicherung — Das Erfordernis, Sicherheiten deutlich über der Kredithöhe zu stellen, was die Bonitätsprüfung ersetzt, wenn der Kreditnehmer pseudonym ist.
Related terms
Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.