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Doesn'T adding liquidity also run the risk of exacerbating the

current deficits?

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How so?

Carlos | Stale Capital- Автор вопроса
Rick Barber
How so?

the greater the TVL, the greater the risk of increasing IL if those assets diverge from BNT

Rick Barber
How so?

If they deposit LINK, wouldn't they automatically take part in the socialized deficits in the pool? And if the value of LINK then rises against BNT, the nominal value of the deficit would increase more than than had they not deposited?

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