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I have never heard of SALT, but what you describing sounds like an overcollateralized loan to me. One use case would be to short something. For example, you cou
by mudrockbestgirl 4y ago
I have never heard of SALT, but what you describing sounds like an overcollateralized loan to me. One use case would be to short something. For example, you could deposit USDC and borrow ETH. Sell ETH, wait for price to go down, buy it back, and pay back your loan.
- JonathanBeuys 4y agoYes, it is an overcollateralized loan. And yes, borrowing an asset and selling it means you are short regarding that asset.
- mudrockbestgirl 4y agoI assume you mean borrowing an asset. You cannot short most assets because for most of them only spot markets exist, no derivatives. So the ability to have a short position on these assets is a big use case.
- JonathanBeuys 4y agoYes, "borrowing". Fixed!