One question, lets say a big whale creates an vault,

Question

One question, lets say a big whale creates an vault,

minting dusd, swapping to dfi and paying back collateral with dfi.
because he has so large volume, the small transaction fees (swap, costs for vault) it is nothing to him, and he is automating the process, so more and more dfis got burned

is this not abusing the system, like a weak spot of this?

#blockchain #cryptocurrency #defichain #english

0

07.02.2022

3 ответов

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Jonathan

I think you’re neglecting the 1% fee to pay loans with DFI. A whale wouldn’t automate some sort of perpetual DFI burn because it would result in losing 1% of their money when paying off with DFI. I suppose it can work, but you’d need to swap the minted dUSD to DFI, wait for the DFI to appreciate by 1% or more, then pay off the dUSD loan with DFI. Perhaps if the whale is big enough to affect the value of DFI by 1% this might be sustainable 🤔

0

08.02.2022

Dennis Washington

Jonathan
I think you’re neglecting the 1% fee to pay loans ...

Except the price of DFI measured in dUSD has yet to hold less than a 1% gap for more than a few minutes

0

08.02.2022

Dennis Washington · Accepted Answer

Dennis Washington

This was the reason dTokens (including dUSD) in the original idea were not supposed to exist without backing. Unfortunately this seems to be a dropped ideal. Let's hope there is actually an upside to this after it settles in... 😨

0

08.02.2022

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One question, lets say a big whale creates an vault,

3 ответов

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