I made a mistake before. Sorry. So if you fund

Question

I made a mistake before. Sorry. So if you fund

a vault with 150 dUSD you get $150 credit, and you get to borrow out $100, even though your real value is only $100 at $.66. you can then get say $100 worth of dTokens correct?

so if it was say $.60 I could do likewise and get $100 of dTokens or if it's .50 I could get $100 of dTokens correct?

#blockchain #cryptocurrency #defichain #english

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05.07.2022

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Andreas · Accepted Answer

I think I have to disagree. If you mint through a vault you also mint at oracle price. If I collateralize 150 dUSD I can mint another 100 dUSD, but those 100 dUSD are only worth 0.66$ at the market. I can either sell them at the market or recollateralize them. You can repeat this process until you can't mint any more dUSD. But you won't win anything from it since you're just paying interest to the vault for minting dUSD. You won't inflate the supply either because you put everything back into the vault.

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I made a mistake before. Sorry. So if you fund

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