What Is the Benefit of a Transparent Collateral System on a DEX? ▴ Learn

What Is the Benefit of a Transparent Collateral System on a DEX?

A transparent collateral system allows any user to verify the total collateral backing the exchange's open positions in real-time on the blockchain. This eliminates the need to trust the exchange's internal accounting and provides immutable proof that the system is fully collateralized, which is a significant advantage over the opaque systems of centralized exchanges.

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