Discover and read the best of Twitter Threads about #wrappedbtc
Most recents (1)
The reason @CelsiusNetwork is not at risk is that they are responsible for #crypto commodities not valuations. They provide liquidity to markets in the form of a commodity.
The value of the commodity decreasing doesn’t matter.
1/15
The value of the commodity decreasing doesn’t matter.
1/15
In fact, outside of #Luna and its #UST pair, the underlying commodity #CelsiusNetwork has is still the same.
And the yield it provides is a commodity relationship — not a valuation one.
Thus, users receive a stable amount as yield because the yield contract is stable.
2/15
And the yield it provides is a commodity relationship — not a valuation one.
Thus, users receive a stable amount as yield because the yield contract is stable.
2/15
If I offer you sugar on an exchange and the price goes down on it, I still own my sugar. Someone else may have determined my sugar is worth less — but that’s not the risk at hand.
The commodity itself is intact.
3/15
The commodity itself is intact.
3/15
