calculate the APY every 60 seconds.... Could it be a situation in which the APY is negative? ... Not liquidation, but negative interest rate? Anyone knows?
But technically could that happen?... Can they be in a situation in which the trading done with the risky options go sour and the merchants fees cannot cover the rest?
when a leveraged position gets liquidated, those coins go to the treasury. So there would never be a negative in the treasury
Staking 3.0 brings around $15M (as last reported) Djed will bring 10s of millions per month in a fully operational mainstream Cardano. Enterprise merchants will be loaded in the upcoming months. All of this will be used to buy COTI and distribute them to stakers. That's why I don't see us having a negative interest rate in realistic scenarios.
If I understood correctly, theoretically, is there a possibility that when all leverage stakers "win" and the rewards outpace the revenue stream? I think since it is algorithmic, the math will not allow such occurrence. Just my initial thoughts 🙂
well there is only a specific amount of coins in the treasury (revenue stream). The APY will be recalibrated every 60 seconds accordingly to what that current revenue stream is. (likely an avarage of revenue stream over X hours). so if the revenue stream goes down, so will the APY
This is what I also think... A 0% could be the case as the APY is not fixed.. Hopefully they trading algorithms will not allow for a loss and in a case of all stakers winning a part of the wins will be withhold and send to the 1x
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