I’m wondering how Duck Pools works. I’m watching this LENFI video

Question

I’m wondering how Duck Pools works. I’m watching this LENFI video

which is a Cardano lending protocol and it was sponsored by Snek meme coin so it got used in the example I’m about to share.
The borrower wants 1,000 ADA so he locks 4,000 Snek worth of ADA plus 30 ADA as an up front payment.
The duration would be 90 days so he agrees to 3% interest a month I think on top of the 30 ADA he paid up front.
How would that work on Duck Pools?
If I want 1,000 ERG, do I offer 4,000 ERG as collateral (I don’t have that kind of ERG, I’m just trying to mirror the example) plus 30 ERG up front and then a 3% monthly fee to sweeten the deal?
That seems like A LOT of collateral but I guess it’s in case the asset price tanks the lender is not left to hang dry.
Right now my ERG is in a yield farm with SPF.
Does that mean my ERG can still yield farm while I borrow ERG from Duck Pools?

#cryptocurrency #english #ergo

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30.08.2023

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DiscordBridge · Accepted Answer

DiscordBridge

[ @cafebedouin ] I'd suggest going to the website and plugging in numbers. The important detail is the percentage, very easy for 150% in collateral to get liquidated given the volatility of crypto.

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10 месяцев назад

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I’m wondering how Duck Pools works. I’m watching this LENFI video

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