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The issue is that it is uneconomical. Collateral is set at 4-5x. The market for people who want to make that trade is limited.
by hashsalt 8y ago
The issue is that it is uneconomical. Collateral is set at 4-5x. The market for people who want to make that trade is limited.
- DennisP 8y agoI know people who do it. They expect a long-term rise in ETH value, but they want to spend some money now without paying capital gains. They use Maker to essentially take a loan out on their ETH collateral. (And yes, they talked with their tax advisors.)
- hashsalt 8y agoThats exactly what I had in mind. A reasonably intelligent trader doesnt want to make his operation more capital intensive however. Has use cases, but limited.