4 ms·

I bought this car with cryptocurrency and still have my crypto

2 points by andrewfromx 6y ago

gus_massa 6y ago
So ... he paid the car with a loan, and now have to pay the loan ... It's just like getting a mortgage of your home or any other types of credits you can get from your bank. What is the monthly interest for the loan?
- andrewfromx 6y ago
  it's basically a loan but the interest rate is hard to calculate. You have to put up some coins as collateral. For example say I put up $1000 USD worth of bitcoin with a 150% Liquidation Ratio. This ratio is the collateral-to-dia ratio at which point my collateral becomes vulnerable. So I want to be "safety above" this ratio when I decide how much DIA to get. So 667.0 would be the max, in this example I'll generate just 500 so my ratio is 200%, safety above. So boom, they give me 500 DIA (worth exactly $500 USD) and I just have to agree if the value of my collateral falls below the ratio: 1. Give back some of this DIA or 2. Depoit more collateral If I don't do this in time, my collateral goes on the auction block!
  - gus_massa 6y ago
    I a magical world where the price of ETH is exactly $2500 every day for the next 100 years: If they give you 500DIA, how many DIA must you return? Is there a time limit?
    - andrewfromx 6y ago
      there are fees: https://drive.google.com/file/d/1wuBTTfic0n0Ne8iEdJ9e93DOK1qkBcWd/view https://drive.google.com/file/d/1wuBTTfic0n0Ne8iEdJ9e93DOK1q... But yes, as long as you stay above your ratio, you are helping the DIA network maintain it's true stable 1 DIA = 1 US Dollar ratio backed by real collateral. Far as I know, no time limit. https://vimeo.com/427849477 https://vimeo.com/427849477
      - gus_massa 6y ago
        IIUC the "Stability fee" is the annual interest ratio: 3.5% or 5.5% or 9.0% depending on your collateral level. (And the 13% "Liquidation fee" is a penalty in case your collateral drops too much.)
        andrewfromx 6y ago
        so cool, you don't talk to a loan officer, you don't have to get anything approved. All just smart contracts that automatically go and get enforced. All we need to do next is move this from ETH to ADA! https://investorplace.com/2021/04/smart-contracts-could-elevate-cardano-to-a-top-tier-cryptocurrency/ https://investorplace.com/2021/04/smart-contracts-could-elev...

2 points by andrewfromx 6y ago

So ... he paid the car with a loan, and now have to pay the loan ... It's just like getting a mortgage of your home or any other types of credits you can get from your bank. What is the monthly interest for the loan?

andrewfromx 6y ago
it's basically a loan but the interest rate is hard to calculate. You have to put up some coins as collateral. For example say I put up $1000 USD worth of bitcoin with a 150% Liquidation Ratio. This ratio is the collateral-to-dia ratio at which point my collateral becomes vulnerable. So I want to be "safety above" this ratio when I decide how much DIA to get. So 667.0 would be the max, in this example I'll generate just 500 so my ratio is 200%, safety above. So boom, they give me 500 DIA (worth exactly $500 USD) and I just have to agree if the value of my collateral falls below the ratio: 1. Give back some of this DIA or 2. Depoit more collateral If I don't do this in time, my collateral goes on the auction block!
- gus_massa 6y ago
  I a magical world where the price of ETH is exactly $2500 every day for the next 100 years: If they give you 500DIA, how many DIA must you return? Is there a time limit?
  - andrewfromx 6y ago
    there are fees: https://drive.google.com/file/d/1wuBTTfic0n0Ne8iEdJ9e93DOK1qkBcWd/view https://drive.google.com/file/d/1wuBTTfic0n0Ne8iEdJ9e93DOK1q... But yes, as long as you stay above your ratio, you are helping the DIA network maintain it's true stable 1 DIA = 1 US Dollar ratio backed by real collateral. Far as I know, no time limit. https://vimeo.com/427849477 https://vimeo.com/427849477
    - gus_massa 6y ago
      IIUC the "Stability fee" is the annual interest ratio: 3.5% or 5.5% or 9.0% depending on your collateral level. (And the 13% "Liquidation fee" is a penalty in case your collateral drops too much.)
      - andrewfromx 6y ago
        so cool, you don't talk to a loan officer, you don't have to get anything approved. All just smart contracts that automatically go and get enforced. All we need to do next is move this from ETH to ADA! https://investorplace.com/2021/04/smart-contracts-could-elevate-cardano-to-a-top-tier-cryptocurrency/ https://investorplace.com/2021/04/smart-contracts-could-elev...