In the traditional world, an "uncollateralized" (or unsecured) loan is one where you don't hand over a car or house as a guarantee. Instead, the bank trusts you based on your credit score, income, and financial history. In crypto, most loans are "overcollateralized," meaning you must lock up more digital assets than you borrow to protect the lender from price crashes. Uncollateralized crypto loans aim to remove this barrier, letting you borrow funds without putting up a massive amount of crypto first.