Well, Pawn Shops and all lending institutions like them as one clear example, but over-collateralization can occur in multiple different marketplaces for any reason we could never think of.

The perspective is you want to get a loan against assets, same as individuals who want to get loans and have to over-collateralize to get them in fiat markets.

Hey, we are on the same page with crypto on a lot of things, but so far most of the criticisms I see you putting into crypto are carry over problems that financial traders bring over from Wall Street into the crypto market, making them indicative of a broader problem that have little to do with blockchain or decentralization