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Seemingly another case of crypto inventing a thing that already existed, collateral agreements. The test here is did they write the agreements, if any written
by shapefrog 4y ago
Seemingly another case of crypto inventing a thing that already existed, collateral agreements.
The test here is did they write the agreements, if any written agreements even exist, using the knowledge from millennia of traditional finance, or did they reimagine it for the globalised decentralised fantasy world.
> Overcollateralised loans with automatic liquidation are neat.
You have just described the margin facility that your broker and others have offered for 100's of years.
- cuteboy19 4y agoWorking on margin is the exact opposite of overcollateralization.
- JumpCrisscross 4y ago> Working on margin is the exact opposite of overcollateralization Not really. Margin purchasing requires less than 100% collateral to assets. Crypto overcollateralisation is more akin to borrowing against securities. I can do this around 3 to 4% for up to 30% of my account value. If I had more capital, the rates would be less.