@EnergyB0x 6 September 2021 more from that month

Some days ago a rich discussion took place among noisers about the collateral funds needed to borrow cryptos in Celsius Network. I was astonished by 1:5 ratio, 2.5K $ to have 500$, someone argued that guarantees have to be huge in these cases. Reading Liqwid Swap Whitepaper, a new DEFi on Cardano chain under development, I found this interesting part where they project a lending and borrowing system where the ratio will vary between 0 an 1! This is what I expected: if your collateral cryptos are volatile you cannot collateralize 5 times the amount you borrow, if they are stable 1:1 should be sufficient, indeed. You can access the full document here: https://drive.google.com/file/d/1FfSfstUA7lJ-YaLGxmrGFVGj6TNLGX5f/view