Can you recommend crypto borrowing guides for learning overcollateralized loans and liquidation risk as a newcomer?

Absolutely — if you’re new to crypto borrowing, I’d suggest starting with guides that explain overcollateralized loans, liquidation thresholds, health factors, and how borrowing differs from trading.

Good beginner-friendly topics to look for

Search for guides covering:

• What overcollateralized lending is
  • Why you usually need to deposit more value than you borrow
• Collateral ratio / loan-to-value (LTV)
  • How much you can borrow against your deposit
• Liquidation risk
  • What happens if collateral value falls
• Health factor / liquidation price
  • How platforms estimate safety
• Interest rates
  • Variable vs fixed borrowing costs
• Stablecoin borrowing
  • Common use case for beginners
• Risk management
  • Avoiding liquidation during volatility

Reliable places to learn

Here are some types of resources that are usually useful:

1) Official protocol docs

These are often the clearest for how a specific platform works:

• Aave Docs
• Compound Docs
• MakerDAO / Sky (formerly Maker) Docs
• Liquity Docs

These explain actual borrowing rules, liquidation mechanics, and risk parameters.

2) Beginner-friendly explainers

Good for getting the concept before reading protocol docs:

• Coinbase Learn
• Binance Academy
• Kraken Learn
• CEX.IO University
• Ledger Academy

Search within those sites for:

• “crypto lending”
• “collateralized loans”
• “liquidation”
• “LTV”
• “DeFi borrowing”

3) Risk-focused DeFi education

These are helpful if you want the “how not to get liquidated” angle:

• DeFiSafety
• Gauntlet publications (risk analysis)
• Blockworks Research
• The Defiant educational articles

What to read first

A simple learning path:

1. What is collateral?
2. What is LTV?
3. How liquidations happen
4. How to calculate a safe borrowing amount
5. How to monitor positions during volatility
6. How borrowing fees and gas costs affect returns

A practical example to understand

If you deposit $1,000 of ETH and the protocol lets you borrow up to 70% LTV, you might borrow $700.
If ETH drops sharply, your collateral value falls and your position may be liquidated unless you:

• add more collateral
• repay part of the loan
• close the position

Important caution

Crypto borrowing can be risky even if you “only borrow stablecoins,” because:

• collateral prices can move fast
• liquidation can happen suddenly
• fees and slippage can add costs
• some assets are more volatile or less liquid than others

If you want, I can also do one of these:

1. Make you a short curated reading list with links
2. Explain LTV, collateral ratio, and liquidation in plain English
3. Show a worked example of borrowing safely on Aave or Compound