Other People’s Money (OPM) typically refers to managing and investing someone else’s money.

OPM is a term used in the context of Decentralized Finance (DeFi) to refer to the practice of using borrowed funds to increase one’s potential returns on an investment. This is similar to the use of leverage in traditional finance, where an investor borrows funds in order to increase their buying power and potentially generate larger returns on their investment.

In the world of DeFi, OPM typically refers to the use of decentralized lending protocols to borrow funds in order to invest in other DeFi assets or strategies. For example, an investor might borrow funds in order to invest in a yield farming strategy, where they use the borrowed funds to earn rewards on their investment.

The use of OPM in DeFi can be risky, as it increases the potential returns on an investment but also increases the potential losses. It is important for investors to carefully consider the risks and rewards of using OPM before deciding to borrow funds in this way.

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