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The USDC is not frozen as collateral? The way I understand it, I could borrow $10 USDT collateralized by (say) $11 of USDC, but then I couldn't convert that $1
by paulgb 5y ago
The USDC is not frozen as collateral?
The way I understand it, I could borrow $10 USDT collateralized by (say) $11 of USDC, but then I couldn't convert that $11 of USDC to $11 USD until I bought back the $10 USDT and returned the loan.
- anonymoushn 5y agoThat's correct. I'm just saying you could sell the 10 tether for dollars and put those in your bank account while you wait for the tether collapse.
- paulgb 5y agoAhh, I see what you mean. That way if USDC collapses, I would lose just the amount it was over-collateralized by. If USDT completely collapses but USDC does not, I would gain the amount I was short USDT. This is more interesting. Thanks for explaining it.