I’m a bit confused by the mAsset borrowing. For example,

Question

I’m a bit confused by the mAsset borrowing. For example,

let’s say you use aUst for collateral and borrow mTSLA. What happens if the mAsset goes up or down? You still owe the same # of mTSLA, so it doesn’t matter, right? Also, are you paying interest on the loan?

#cryptocurrency #english #mirror.protocol

0

31.12.2021

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Mister AV

robo majeur
I'm also trying to figure this out: best I could c...

thats what i guessed. in my example if eth goes up you are in trouble, but my "strategy" is borrow meth, sell meth for ust and use it to earn in anchor, so, unless eth goes up close to 20%, its ok....

0

01.01.2022

E H

Mister AV
thats what i guessed. in my example if eth goes up...

thats the strategy I've used

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01.01.2022

robo majeur

Mister AV
thats what i guessed. in my example if eth goes up...

Interesting strat. effectively you're shorting if it goes down (you sold the eth already), if it goes up you just keep adding cash collateral right? When you close the position itself you're only going to cop the 1.5% so provided you don't close often, should be smooth sailing,..

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01.01.2022

Mister AV

E H
thats the strategy I've used

how did it work for u?

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01.01.2022

E H

Mister AV
how did it work for u?

I'm on tenderhooks at the moment! If ETH goes up I'm screwed.. haha but I've provided ample collateral and played it very conservative

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01.01.2022

robo majeur · Accepted Answer

robo majeur

I'm also trying to figure this out: best I could come up with is you might have to adjust your collateral if/when TSLA goes up because your tsla will be worth more and you will be obliged to meet the same collateral ratio in aUST (cash). Borrowing incurs 1.5% protocol fees + a transaction fee. Personally i can only see profit from this for a short...

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01.01.2022

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I’m a bit confused by the mAsset borrowing. For example,

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