is actually used to calculate collateral for this specific token (others are at .5) and not really related to borrowing USDX specifically but any token?
Yes, if you have 100,000 USDX supplied then your maximum borrow balance allowed before liquidation is now 25,000 USDX higher So if USDX is at $0.95 then that gives an extra $23,750 worth of max borrow limit, remembering that the price will be based on a TWAP-720 price feed (averaged over previous 12 hours) USDX can also be borrowed with a system wide limit of 5m USDX initially
5M is really low...
Yes, I think it is the teams usual safety first, slow and steady approach, let it settle see what effects it has, if everything is ok after an initial obervation period increase it a little more, then a little more
100% agree with this approach
The way proposal is worded and names of the fields are what was confusing to me. With the wording and field names I would of guessed that when borrowing USDX your LTV would be considered at .25 but it seems like they're using that field to determine both how much USDX you have supplied is worth in collateral and also to enable borrowing in general. I don't see a way they could really separate the two with fields I'm seeing.
Yes it is not related to borrowing despite the poor wording it is simply the calculation of your collateral, where all current assets are 50%, USDX will initially be limited to 25%
Amazing Thanks Daz. 👍
The 5m USDX borrow limits is quite low so the second option of stacking USDX won't work once that limit is hit, in which case you'd have to lookm at the BUSD route. Which method is the better depends on if cheap USDX is available, and what th BUSD borrow reward APY is and how high the borrow BUSD borrow fee is USDX will also have a supply PY and borrow APY borrow fee which would need to also be taken into account so would need to leave a margin for borrow fees in any stacking/leveraging strategy
Any clues on what will be the USDX API% supply and borrow fees?
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