DROP vs TIN - Differences

[bitm00n]

another interesting post about this topic:

Tin vs Drop tokens

As I dive deeply into the Centrifuge chain I am curious about many things. One thing that I don’t fully understand and would like more clarification on is how the Tinlake pools are determined to be higher or lower risk? I understand that the tokens used for collateral with Maker Dao will be Drop (higher risk/ higher return) and Tin (lower risk / lower return). I just don’t know how the process works and want to know more. Please let me know if you understand.