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Sumaa
@sumaa
Defi Trivia: Why can you access more leverage with perpetuals than you can with undercollateralized lending (i.e gearbox)?
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rob solomon
@robmsolomon
Better liquidation systems
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Sumaa
@sumaa
yeah effectively. In perps the funding rate creates a backstop in scenario of a sharp price movement, whereas in undercollateralized lending liquidators have to sell of the asset causing cascading effect with no backstop
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