Great post!!! I did enjoyed it. I hadn´t read that much about loans, and I found it so interesting and fresh! I just got a little bit confused with the collateral mechanism. As I understood you deposit a collateral into a platform where is locked (mainly to protect the loaning platform from the devaluation of the token) and the loan is what we call the utilization rate, and depending on the volatility the interest rate will increase or decrease. But I don´t understand why someone, lets say with 100 ETH as in the example, would risk their tokens to get 70% of what they already have and could use risk-free. Am I correct or I just didn´t understand it correctly? English is not my first language so that´s why I got a little bit messed-up. Thank you for your content! I listen to your podcast every morning when I´m working-out, and I read your newsletter everyday!
Great post!!! I did enjoyed it. I hadn´t read that much about loans, and I found it so interesting and fresh! I just got a little bit confused with the collateral mechanism. As I understood you deposit a collateral into a platform where is locked (mainly to protect the loaning platform from the devaluation of the token) and the loan is what we call the utilization rate, and depending on the volatility the interest rate will increase or decrease. But I don´t understand why someone, lets say with 100 ETH as in the example, would risk their tokens to get 70% of what they already have and could use risk-free. Am I correct or I just didn´t understand it correctly? English is not my first language so that´s why I got a little bit messed-up. Thank you for your content! I listen to your podcast every morning when I´m working-out, and I read your newsletter everyday!