@Cryptodaz2 in Kava Lend, is it right to say that

Question

@Cryptodaz2 in Kava Lend, is it right to say that

supplying , borrowing and resupplying ATOM
(similar to USDX) carries no liquidation risk? Apart from the creeping interest fee.

#blockchain #cryptocurrency #english #kava

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14.08.2022

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I lOve to waSte $cammer time Автор вопроса

So rule of thumb is, stick to supplying and borrowing the same asset?

0

14.08.2022

I lOve to waSte $cammer time Автор вопроса

CryptoDaz (Darren)
For safety yes, as soon as any one of the assets i...

In the second example, the system will not allow you to borrow above 50%ltv, how can one borrow 6 ATOM?

0

14.08.2022

CryptoDaz (Darren) · Accepted Answer

For safety yes, as soon as any one of the assets is borrowed above the LTV for that particular asset there is a risk (how much depends on the levels borrowed at) Eg. Supply 1000 USDX borrow 240 USDX Supply 0.1 BTC borrow 0.045 BTC Supply 10 ATOM, borrow 4.5 ATOM Supply 1000 KAVA Borrow 450 KAVA The above is very safe, with the only risk when repaying or borrowing more you can easily exceed the limit if you aren't careful Example 2 As above but extra ATOM borrowed Eg. Supply 1000 USDX borrow 240 USDX Supply 0.1 BTC borrow 0.045 BTC Supply 10 ATOM, borrow 6 ATOM Supply 1000 KAVA Borrow 450 KAVA In the above the ATOM borrow is 60% of the supplied ATOM and so exceeds the 50% LTV, so although the overall level is below the 100% maximum, if the ATOM token price rose by a considerably amounts you could get liquidated while example 1 you can't be

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@Cryptodaz2 in Kava Lend, is it right to say that

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