If i depodit usdx as collateral and borrow usdx up

Question

Kava Official

arthur

If i depodit usdx as collateral and borrow usdx up

to 100% borrowing limit, liquidation happens? or never?
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#blockchain #cryptocurrency #english #kava

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31.12.2021

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arthur Автор вопроса

CryptoDaz (Darren)
If you only supply USDX and borrow USDX and no oth...

supply usdx, borrow usdx. both same price oracle against true usd? if so, it true?

0

31.12.2021

CryptoDaz (Darren)

arthur
supply usdx, borrow usdx. both same price oracle a...

USDX on Kava Lend uses a TWAP-720 (12 hour average) price feed but if you are both supplying usdx and borrowing USDX and no other assets then both the supply side and borrow side rises and falls in proportion and hence the ratio between supply and borrow remains steady

0

31.12.2021

CryptoDaz (Darren) · Accepted Answer

If you only supply USDX and borrow USDX and no other assets are involved then you are relatively safe from liquidation other than due to the borrow fee which may increase the borrow side faster than the supply side so never borrow at 100%, but you are safe to borrow relatively close to the limit, certainly 97%. If you aren't already aware you can resupply that borrowed USDX and borrow a little bit more and repeat. You can turn 1000 USDX into 1,300 USDX supplied and 300 USDX borrowed for example after several iterations This can be repeated for any asset. i.e Supply 1 BTC and because the LTV is 50% and not 25% as it is for USDX you can turn that 1 BTC into almost 2 BTC supplied and 1 BTC borrowed, although the max i would suggest would be 1.97 BTC supplied and 0.97 BTC borrowed If using this technique you need to take care to always keep a safety margin and double check each tx before commiting and ensure you understand the platform as it's mistalkes can happen which could result in liquidation so only advised for the more advanced investors

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If i depodit usdx as collateral and borrow usdx up

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