Paydax gives users the flexibility to borrow against many different types of assets, not just
popular cryptocurrencies like Bitcoin or Ethereum. It accepts more than 15 types of
collateral. This includes both physical assets, like tokenized gold, and digital assets such as
staking tokens or LP tokens from platforms like Uniswap.
This wide support means that users don't need to sell their long-term investments or rare
digital assets just to access funds. Instead, they can safely lock these assets in a secure
smart contract vault and borrow blue-chip cryptocurrencies without losing ownership. To
keep the system safe, Paydax uses over-collateralization, which means users must deposit
slightly more than they borrow.