Credit score danger is a part of nearly each monetary asset in conventional markets, however not so in DeFi. Every part from mortgages to CME corn futures, German bunds and Amazon reward playing cards has an embedded credit score element (and value). In DeFi, nevertheless, your credit score file is completely irrelevant. Your borrowing energy in AAVE, for instance, is set solely by the worth of the collateral you set in. If it falls past the brink and the sensible contract features accurately, your place is liquidated. There is no such thing as a recourse, nobody to name, no place to elucidate your scenario.
