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Sumaa
@sumaa
@bountybot 25 usdc to the first person that provides a correct answer to this defi trivia I want to see if this is known among the defi community or not
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Hamza
@canhamzacode
Perpetual gives you more leverage because you are only speculating on the price of an asset, not borrowing or lending the actual asset. The company can easily liquidate your position if the market moves against you, hereby minimizing their risk. In contrast, undercollateralised lending involves borrowing real asset which exposes the lender to more risk. To protect themselves, they require more collateral and offer less leverage just to reduce their chance of loss.
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Sumaa
@sumaa
it does have something to do with dealing with real asset in lending, but "ease of liquidation" is not the reason
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