Are there any limits on how much I can borrow from or lend to other users on the platform?
Yes, there are limits on how much you can borrow from or lend to other users on the Compound crypto project.
The maximum amount of borrowing and lending is determined by the collateralization ratio of the asset being borrowed or lent. For example, if you are borrowing ETH, the maximum amount you can borrow is determined by the collateralization ratio of ETH, which is currently set at 2.5x.
This means that for every $1 of ETH you borrow, you must have at least $2.50 worth of ETH in your wallet as collateral. Similarly, if you are lending ETH, the maximum amount you can lend is also determined by the collateralization ratio of ETH.
In addition to this, Compound also has a global limit on how much total value can be borrowed or lent across all assets combined. This limit is currently set at $1 billion and it is subject to change depending on market conditions and other factors. Finally, Compound also has individual user limits which are based on a user's reputation score and activity level on the platform.
These limits are designed to ensure that users do not overextend themselves when borrowing or lending funds on Compound and they vary from user to user depending on their reputation score and activity level.
