What is the purpose of collateral in DeFi lending proto - Practice (Tamil) - ObjectiveMcq

Loading practice questions

A focused practice platform for competitive-exam MCQs, subject wise, topic wise practice, and current affairs revision.

Exams

SSC CGL
UPSC CSE PRELIMS
IBPS PO
RRB NTPC
CDS

Subjects

Mathematics
Physics
General Knowledge
English
Reasoning

Resources

Current Affairs
Search MCQs
Practice Sets

Company

About Us
Contact
Privacy Policy
Terms of Use
Disclaimer
Copyright

Practice library for exams, subjects, and daily revision. For learning purposes only.

© 2026 ObjectiveMcq.ComAll rights reserved

What is the purpose of collateral in DeFi lending proto - Practice (Tamil) - ObjectiveMcq

HomePracticeBlockchainBasicsWhat is the purpose of collateral i...

Basics BlockchainMedium

What is the purpose of collateral in DeFi lending protocols?

Correct Answer: A — To secure the borrowed assets and minimize default risks

Explanation:

In DeFi lending protocols, collateral is provided by borrowers to secure loans, ensuring that lenders are protected against default risks.

Related Practice

What is Blockchain?
What is the first block of a Blockchain called?
Who introduced blockchain technology?
Which of the following is a key feature of blockchain?
Which is the first cryptocurrency to use blockchain technology?
What is the primary purpose of blockchain technology?
What type of database is blockchain?
What is the unit structure of a blockchain called?