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For example: i took a loan and mint dGME and

dUSD and provide liquidity in the gme/usd pool. Why can’t i pay back my dGME loan in DFI? I always have to convert my rewards in dfi to gme to pay back?

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You “can” if you provide the same value of DFI for the amount of GME you’ve taken. Which is the same as converting/buying GME, which is what you do as of current implementation. That is logical, because you are not borrowing the value of the asset, but you are borrowing an asset itself. If you borrowed 10 GME from me, I would like them back, because those could have grow in fiat value. If you borrow my car for a weekend, I would like my car back, not the money for it. 🙂

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