If it's possible to use 100% dUSD as a collateral

Question

If it's possible to use 100% dUSD as a collateral

for a vault, wouldn't it make sense to have a 100% vault option for these? DUSD is a stable coin and therefore 150% seems overkill.

#blockchain #cryptocurrency #defichain #english

0

04.04.2022

4 ответов

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Philipp Morger Автор вопроса

Phil
The asset you borrow still keeps fluctuating. Thus...

I never used vaults so far. It was my clear understanding that the value of the collateral can liquidated a vault when it drops. But in never crossed my mind that the value of the loan itself could cause a Liquidation.

0

04.04.2022

Philipp Morger Автор вопроса

So if I understand right, if I use a 150 vault to provide liquidity in a pool. Let's say dusd-dfi and dfi climbs from 4.5 to 7, then I would actually be in trouble?

0

04.04.2022

Torsten

Philipp Morger
So if I understand right, if I use a 150 vault to ...

DFI you cannot mint - hence take a s loan. Just grab another asset. Let.us call it dTSLA. You mint this at a certain Oracle value. Time goes by and the oracle prices increase. Logically, your collateration ratio decreases. Because of your loan value.

0

04.04.2022

Phil · Accepted Answer

Phil

The asset you borrow still keeps fluctuating. Thus 100% collateral is not feasible.

0

04.04.2022

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If it's possible to use 100% dUSD as a collateral

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