3 ms·

How’s that different from leverage on forex trading?

• drcode 6y ago
  Anybody can use it with ZERO collateral.
• xiphias2 6y ago
  Ask redditors on Wall street bets: when the lending party has counterparty risk, the rules of lending are opaque and can disappear in a second without a clear explanation. Try asking $100M for a short time from any bank, I'll see how successful you are.
  • thefounder 6y ago
    Exactly! The old ways of doing trading proved time and time again that the current system is opaque, biased and corrupt.
  • spurdoman77 6y ago
    What is the liquidity of ETH lending market? 100M short term loan easy to get, what would be the interest? Last time I checked defi usdt lending rates seemed to hover around 8-9%. Not that exciting when you consider insane gas fees and all the hassle managing the contracts.
    • vmception 6y ago
      Flash loans open and close that 100M in a single block. It is instant execution on the mining nodes. Nanoseconds of computational time. If the trade isn't possible then the transaction fails and it doesn't go through at all. You pay the transaction fee.
    • xiphias2 6y ago
      0.3% fee/trade for Uniswap. As it's an atomic transaction, yearly interest rate has no meaning actually.