I would appreciate some comments on this “basic” scenario to

Question

I would appreciate some comments on this “basic” scenario to

see if my thinking and calculation is reasonable.

I am thinking about taking out a loan where I use (this is just a model - so scammers don’t go after me) lets say 0.5 WBTC as collateral and borrow DAI against it. I intend a LTV of 30% and as far as I know the Liquidation threshold for WBTC is 70% which in this case - if I understand it correctly - it would mean that if the price of BTC falls from the current level of Euro 53,500 to Euro 16,050 (see table above) I would face a liquidation, right? Let's assume DAI stays neutral, or at least with minor ups and downs.

Basically, I deposit 0.5 WBTC and borrow from that collateral 30% of it in DAI. If BTC price falls to the levels stated above, I do have a problem or face liquidation.

I am asking this question to be sure where (BTC-price wise) I will be facing this scenario. So, is my thinking and calculation correct, or am I completely off the mark? @admin

#aave #blockchain #cryptocurrency #english

0

16.10.2021