HI, If I borrow Atom against ATOM, is there a

Question

Kava Official

Sunix⚡️

HI, If I borrow Atom against ATOM, is there a

chance of liquidation?

#blockchain #cryptocurrency #english #kava

0

01.02.2022

5 ответов

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Sunix⚡️ Автор вопроса

Cameron | Kava (I will never DM first)
As long as you don't borrow close to the maximum l...

Let's suppose I borrow the max amount (30% of the supply). If I borrow Asset-A against Asset-A, the liquidation risk should be near zero, if not zero, isn't it?

0

01.02.2022

Evgen25

Sunix⚡️
Let's suppose I borrow the max amount (30% of the ...

Yep, In this case, the risk will depend on the difference between the interest of the loan and the debt for your asset. But that's pointless, isn't it?

0

01.02.2022

CryptoDaz (Darren)

I'm not sure where you're getting the 30% figure from, but the LTV is 50% (except USDX which is 25%). So with atom as an example you could repeat the supply, borrow and resupply process multiple times to boost your yield. Eg. If you supply 100 ATOM, borrow 48 ATOM and resupply, you could borrow a further 24 atom and repeat. So youight end up with perhaps 190 atom supplied and 90 atom borrowed, almost doubling your supply balance and your rewards. Always remember when you claim your kava rewards to delegate them to a low commission validator so they are earning kava staking rewards while they are vesting for 12 months giving you liquid kava staking rewards of 30% APR throughout the year

0

01.02.2022

Sunix⚡️ Автор вопроса

CryptoDaz (Darren)
I'm not sure where you're getting the 30% figure f...

Thank you

0

07.02.2022

Cameron | Kava (I will never DM first) · Accepted Answer

Cameron | Kava (I will never DM first)

As long as you don't borrow close to the maximum limit and/or you supply borrowed ATOM to Lend to reduce your liquidation risk.

0

01.02.2022

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HI, If I borrow Atom against ATOM, is there a

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