DeFi

Defi Trivia: Why can you access more leverage with perpetuals than you can with undercollateralized lending (i.e gearbox)?

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To my understanding, perpetuals enable higher leverage because of efficient funding rate mechanism, no fixed repayment schedule, quick automated liquidations, e.tc.

Undercollateralized lending protocols offer lower leverage because they deal with actual asset loans. The positions are often longer-term
and liquidation process is slower.
Higher safety margins are needed to protect lenders.

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When liquidating actual assets, large sales can cause significant price slippage in the market. This is an issue for less liquid assets.
Selling large amounts of collateral can drive down asset prices, which causes cascading liquidation. 
The protocols need to maintain larger liquidity reserves to handle potential liquidations, reducing capital efficiency.

This is what i can explain.

ok this is pretty close, although speed doesn't have anything to do with it. I'd say liquidations in both cases can be executed with the same speed. 

Can you expand on the side effects caused from liquidations given undercollateralized loans deal with the actual asset?