Is there any use case for these over-collateralized loans other than getting leveraged exposure to token prices? (Or, like Vitalk did, retaining exposure to token prices while also using the money for something else?) So, for instance, if crypto prices stabilized long term, would the demand for overcollateralized loans disappear? Does anybody take out loans collateralized by stablecoins?
Even if the prices of crypto-currency stabalize long-term, not every token is about being a crypto-currency. Many tokens are like shares in a venture that you wouldn’t expect to have stable prices just like stocks on the stock-market don’t have stable prices.
If I understand right you can also use tokens that are locked in to doing staking as collateral.
Is there any use case for these over-collateralized loans other than getting leveraged exposure to token prices? (Or, like Vitalk did, retaining exposure to token prices while also using the money for something else?) So, for instance, if crypto prices stabilized long term, would the demand for overcollateralized loans disappear? Does anybody take out loans collateralized by stablecoins?
Even if the prices of crypto-currency stabalize long-term, not every token is about being a crypto-currency. Many tokens are like shares in a venture that you wouldn’t expect to have stable prices just like stocks on the stock-market don’t have stable prices.
If I understand right you can also use tokens that are locked in to doing staking as collateral.