Question about ampera and the letter of credit: For example I

Question

Question about ampera and the letter of credit: For example I

deposit 1 eth and a letter of credit is issued to me for 2000 usdc and i have 90 day to pay back. During this time eth goes to 5000$ . Do i have to pay back 5000 now to get my eth or just 2000?
And if eth goes 1000$ where my interest to pay back?

#amp #cryptocurrency #english

0

27.11.2023

10 ответов

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St Автор вопроса

Sovereign Nations
It's collateral, it's not really a loan. you don't...

This is the only answer I got that make sense. Don’t look it as credit. Thanks

0

28.11.2023

Big_Al_225 Johnson

Sovereign Nations
It's collateral, it's not really a loan. you don't...

Thank you for the incredibly valuable feedback my friend :)

0

28.11.2023

mo money, mo problems

Sovereign Nations
It's collateral, it's not really a loan. you don't...

Where did you learn that amp is collateral on ampera? Amp is the governance token. Maybe some party will allow amp to serve as collateral but I don’t think we know that yet. It sounds like you are just speaking about LOCs in a general sense

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29.11.2023

pete K

mo money, mo problems
Where did you learn that amp is collateral on ampe...

It sounded like from some of the reports from community meetings, etc, that they designed the protocol initially to have amp as a governance token, but expect the holders to vote to make it the collateral for system use. This may have been done to avoid regulatory scrutiny

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29.11.2023

m₳n in bl₳ck

pete K
It sounded like from some of the reports from comm...

Ampera protocol will use amp as its governance token. Amp not being used as collateral initially comes down to the strategic move to use the biggest, most liquid assets to start. Also the main ones that get sent around a lot. When governance is live, many expect the community to vote on what to do with protocol fees/ profits. I’m not sure we will see amp as collateral immediately or that soon. But this is all my opinion before the protocol even launches.

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29.11.2023

Esc mojo

m₳n in bl₳ck
Ampera protocol will use amp as its governance tok...

all so that amp becomes part of that group.....the biggest most liquid assets 💪

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29.11.2023

Dan Deojay

m₳n in bl₳ck
Ampera protocol will use amp as its governance tok...

It would be crazy to it any other way and get smoked on a rug pull.

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29.11.2023

Esc mojo

Esc mojo
all so that amp becomes part of that group.....the...

albeit we have a long way to go

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29.11.2023

MJ Javvaji @muralijavvaji

m₳n in bl₳ck
Ampera protocol will use amp as its governance tok...

What if we vote to buy back Amp from open market with the fees Ampera collected and distributes to stakers 🔥 😋 Might be a dream but that shoots up the price exponentially

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29.11.2023

Sovereign Nations · Accepted Answer

It's collateral, it's not really a loan. you don't have to "pay back" anything. The bridge usecase is probably the easiest to grasp. you're on an L2 wanting to get back to L1. there is a 7 day lockup for the fraud proofs. if the bridge implements ampera you'd deposit other assets, say 2,100 USDC (you are transferring 1eth which is @ 2K). after the 7 days and no fraud your 2,100 USDC is released back to your "vault", where you can extract it or you can keep it there to collateralize other DEFI things via the (hopefully) many ampera integrations. first thing you might notice is that the LOC is overcollateralized. this is to help keep you from getting liquidated. the value of your collateral always needs to be more than the LOC's value. when you create an LOC ampera gives you a "liquidation risk indicator" which helps you pick how much collateral you need to cover your LOC. After you create the LOC - if the value of your collateral is approaching the value of the LOC you will get liquidated . Naturally you can avoid this by adding more collateral as your liquidation point is approaching. Hope that makes sense.

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