I don’t understand why more ATOM hasn’t been borrowed from

Question

I don’t understand why more ATOM hasn’t been borrowed from

the money market??
(and resupplied of course)
Theoretically, if everyone was fully optimizing their yields we would see something like a 2:1 ratio in supplied vs. borrowed.
At present it’s more than 6:1

Any thoughts?

#blockchain #cryptocurrency #english #kava

0

29.01.2022

5 ответов

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CryptoDaz (Darren)

Most don't realize that they can safely leverage and boost their yields. Most will simply simply it a leave it not realizing that 48% APY can be increased to well over 100% APY once leveraged and Kava rewards delegated

0

29.01.2022

Aaron Railton Автор вопроса

Mark
Some people could be borrowing other assets agains...

Yes this could provide some explanation. Although I can’t see it being more than those people borrowing ATOM against their other assets (collateral). Rewards are zero for borrowing any of the other assets now so the only reason to borrow would be to short the borrowed asset.

0

29.01.2022

Aaron Railton Автор вопроса

Yeah I was thinking the same thing. But this ignorance is a little baffling. Oh well… I suppose I should stay quiet lest more people get informed and drive borrowing rates through the roof 😏

0

29.01.2022

CryptoDaz (Darren)

Aaron Railton
Yeah I was thinking the same thing. But this ignor...

I was expecting to see more borrowing which would have boosted the suppky and borrow APY

0

29.01.2022

Mark · Accepted Answer

Mark

Some people could be borrowing other assets against their atom collateral is one explanation.

0

29.01.2022

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I don’t understand why more ATOM hasn’t been borrowed from

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