automatically liquidated, presumably you would suffer no loss as a result if you close your long position at the same time as liquidation?
No because you will loose your short farm collateral. Read this document https://docs.mirror.finance/protocol/mirrored-assets-massets#minimum-collateral-ratio-and-multiplier
He means if he shorts something with 8% premium and it goes down to 1% premium, then he earns the 7 percentage point difference. This is in fact the case since he mints in respect to the Oracle price and sells on Terraswap which is a 7 percentage point profit after it reaches 1% premium.
Mayank question, is there a team working on mirror v3 and addressing the issues associated with v2?
But if he bought at the time of shorting then he will not gain that 1%.but if he will buy later after 7% premium then he will get that 1% gain
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