Borrowing

Borrowing operations and portfolio management strategies in the Polkadot ecosystem.

Borrowing tokens is an important component of Decentralised Finance (DeFi) operations and a very popular feature of Decentralised exchanges (DEXes). Borrowing protocols empower users to leverage their existing assets to increase the overall value of their portfolio during market movements.

In the Polkadot ecosystem, this constant spread of value across parachains and external ecosystems is optimised by novel clearing house mechanisms which assist borrowers in defining their strategies.

A view of how XCMP interconnects Parachains offering DeFi services in the Polkadot ecosystem.
The Polkadot Relay chain has onboarded more than 12 DeFi parachains in its ecosystem.

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