I have a question about Aave. i understand that if

Question

I have a question about Aave. i understand that if

borrowed asset's valuation grows, then it will require more collateral much like a margin call on a stock exchange. but what if borrowed asset's valuation drops? will I be entitled to less collateral than I supplied at the time of borrowing?

#aave #blockchain #cryptocurrency #english

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06.02.2022

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e.g: I borrow 10 X for 10 ETH. then X's price drops twofold. after repaying the loan, will I get back 10 ETH or 5 ETH?

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06.02.2022

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Essah
Lets say you deposit 10 eth and borrow 5 eth, afte...

yes-yes, I understand the interest bit. what I'm asking is, if I deposit 10 ETH as collateral, then after repaying the loan + interest will I always be able to get my 10 ETH back? or may it be less than 10 ETH if what I borrowed dropped in price meanwhile?

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06.02.2022

Essah

Джентльмен удачи
yes-yes, I understand the interest bit. what I'm a...

Yes you will be receive the 10 eth back

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06.02.2022

Джентльмен удачи Автор вопроса

Essah
Yes you will be receive the 10 eth back

thanks, very curious. so, this provides a huge opportunity for hedging against price drops...

0

06.02.2022