4 ms·
150% collateral (66.7% LTV) seems fairly risky for an asset like Bitcoin tbh
by nly 6y ago
150% collateral (66.7% LTV) seems fairly risky for an asset like Bitcoin tbh
- rawtxapp 6y agoIt handled the black swan event of complete market crash at the beginning of the pandemic pretty easily. And the other thing is Bitcoin's market cap is well over 1T$ now, as expected the volatility goes down as the market cap goes up. I suspect those ratios are going to come down significantly within couple of years.
- pushrax 6y agoI read a bit online after this, and saw various recommendations for people with CDPs to keep more like 300% collateral. If it dips below 150% the contract is automatically liquidated. Should give ample time for the creditor to get their money back.