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Indeed, though at 3:2 you are apparently at considerable risk of the loan being called by anyone (with no margin call beforehand): If the value of the ETH coll
by mannykannot 6y ago
Indeed, though at 3:2 you are apparently at considerable risk of the loan being called by anyone (with no margin call beforehand):
If the value of the ETH collateral that you deposited drops to less than 150% the value of the DAI you withdrew, anyone can come in and "liquidate" the vault, forcibly selling the ETH to buy back the DAI and charging you a high penalty. Hence, it's a good idea to have a high collateralization ratio in case of sudden price movements; I had over $3 worth of ETH in my CDP for every $1 that I withdrew.
- as300 6y agoWhile this is true, you could easily write a listener script (very easy with ETH due to the extensive bloom filter use) that adds more collateral to your position if it reaches, say, within %175 of the capital you withdrew.
- Sargos 6y agoDeFi Saver does this and has a large userbase. https://defisaver.com/ https://defisaver.com/