Is it still possible to pay back dusd loans with

Question

DeFiChain - International

Larry

Is it still possible to pay back dusd loans with

dfi, there by creating algo dusd?

#blockchain #cryptocurrency #defichain #english

0

07.07.2022

5 ответов

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Larry Автор вопроса

Spencer L
We need to remove algo DUSD to lower the fee to ma...

Agreed, and thank you for your response. But it does not answer my question. If you could still pay back dusd loans with dfi, then dusd would be capped about about $1.01 + dex fee, or around $1.31 with current 30% fee. but without this mechanism, it seems dusd price can rise much higher. Is this correct?

0

07.07.2022

Spencer L

Larry
Agreed, and thank you for your response. But it do...

Sorry if I accidentally sidestepped the question. You’re right, DUSD could potentially increase to $1.43 with a 30.2% fee before you can arbitrage.

0

07.07.2022

Larry Автор вопроса

Ah, I see. And does the mechanism you're considering to do the arbitrage consist of using 150% vault, minting dusd, and selling it for such a large profit that you can lose your collateral and still be ahead? or is there a different mechanism in place now?

0

07.07.2022

Spencer L

Larry
Ah, I see. And does the mechanism you're consideri...

DFI = $1 ($1), DUSD = $1.43 ($1) Use 1 DFI, borrow 2/3 DUSD. Use 2/3 DFI to payback the loan, you now have 1/3 DFI and 2/3 DUSD. Normally you can sell 2/3 DUSD and get 0.952 DFI, you would have 1.285. But you have the fee of 30%, so now you only sell 7/15, get 2/3 a DFI, and you end up with the same amount. This causes 10/15 DUSD to be “minted algorithmically” but only 3/15 is burned and paid back, leaving users to be able to create 7/15 algo DUSD per DFI when the price is $1.42857 However you cannot do this now as 1. DUSD price and 2. Disabled payback via DFI.

0

07.07.2022

Spencer L · Accepted Answer

Spencer L

We need to remove algo DUSD to lower the fee to make it profitable for arbitrage

0

07.07.2022

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Is it still possible to pay back dusd loans with

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