In many lending platforms (like MakerDAO), users have to deposit more assets than they
borrow (often known as "Overcollateralization") to ensure the loan is safe. However, once
these assets are locked as collateral, they don't generate any extra income or rewards. This
means a large portion of a user's capital just sits there unused, which reduces their overall
returns. Because of this, fewer people are encouraged to borrow, and the platform's Total
Value Locked grows more slowly over time.
