Over-Collateralization Requirements are a critical aspect of lending and borrowing protocols in decentralized finance (DeFi). This feature ensures that borrowers must provide collateral that exceeds the value of the loan they wish to take out. The primary purpose of this requirement is to mitigate the risk for lenders by safeguarding their investments against potential defaults. By enforcing a higher collateralization ratio, the protocol can maintain stability and trust within the lending ecosystem, as it reduces the likelihood of losses due to borrower insolvency or market volatility. This feature is essential for maintaining the integrity and sustainability of lending platforms in the crypto space.