# Collateral Distribution Behind Borrows

**Overview**

Assets being provided as collateral by borrowers of the given asset. This is important information to depositors of the asset being borrowed since some collateral assets have higher risks than others.

**How can I use it?**

<figure><img src="/files/8B0X5lzDaaU1e2OsZ3bn" alt=""><figcaption></figcaption></figure>

Knowing which type of collateral users deposit into protocols in order to borrow the asset under examination presents useful information in different ways.

Different types of collateral have different levels of risk associated with them. For example, some cryptocurrencies are more volatile than others, and some assets may have more counterparty risk. By understanding the types of collateral being deposited, it can help users and the protocol assess the overall risk of loans against certain type of collaterals.

Understanding which types of collateral are popular can provide insights into risk associated with users. For example, if a large number of users are depositing a volatile asset instead of a stable asset, it may indicate that there is a higher level of risk tolerance among depositors.

In decentralized finance (DeFi) platforms, the types of collateral that are accepted by the protocol are often determined by the community and governance mechanisms. Understanding which types of collateral are being deposited can help users to understand the decision making process and to participate in governance activities.


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