A 𧡠about @Moremoneyfi an interest-free loan platform on #Avalanche
1/8
An interest-free loan platform allows you to deposit a token as a collateral as guarantee of your solvency. You will then be able to borrow a stablecoin - $MONEY - against that collateral, up to a maximum defined by the Loan-to-Value (LTV)
An interest-free loan platform allows you to deposit a token as a collateral as guarantee of your solvency. You will then be able to borrow a stablecoin - $MONEY - against that collateral, up to a maximum defined by the Loan-to-Value (LTV)
2/8
When you take out a loan you generate a debt - 0.5% in the case of MoreMoney -, which is how the protocol generates revenue to sustain itself.
When you take out a loan you generate a debt - 0.5% in the case of MoreMoney -, which is how the protocol generates revenue to sustain itself.
3/8
The beauty of @Moremoneyfi is that by depositing your collateral into their platform your asset will be deposited into @yieldyak_ generating yield and repaying your loans automatically
The beauty of @Moremoneyfi is that by depositing your collateral into their platform your asset will be deposited into @yieldyak_ generating yield and repaying your loans automatically
4/8
There are fundamentally two reasons why you want to use a platform like @Moremoneyfi :
1. Speculation: you are leveraging your asset and youβll be able to use $MONEY to farm or buy assets youβre very bullish about to either trade at a later date or farm with them
There are fundamentally two reasons why you want to use a platform like @Moremoneyfi :
1. Speculation: you are leveraging your asset and youβll be able to use $MONEY to farm or buy assets youβre very bullish about to either trade at a later date or farm with them
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2. Pay the bills: you need money to pay rent or a boat (why not π) but you want to #HODL your #cryptocurrency ? With moremoney you can do exactly that. Borrow the amount of Money you need and you donβt even need to repay it, the protocol itself will!
2. Pay the bills: you need money to pay rent or a boat (why not π) but you want to #HODL your #cryptocurrency ? With moremoney you can do exactly that. Borrow the amount of Money you need and you donβt even need to repay it, the protocol itself will!
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What are the risks:
1. Liquidation: if the value of your collateral goes down too much that it wonβt guarantee your solvency anymore
2. DePeg of $MONEY (if you farm with it): The value of their stablecoin might go below 1$, so if youβre holding it you will be losing money
What are the risks:
1. Liquidation: if the value of your collateral goes down too much that it wonβt guarantee your solvency anymore
2. DePeg of $MONEY (if you farm with it): The value of their stablecoin might go below 1$, so if youβre holding it you will be losing money
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..However, if you sold it for another asset, then repaying your debt will be even cheaper π. $MONEY βs peg is guaranteed by two mechanisms: having a collateral guaranteeing its value (everybodyβs deposited collateral)..
..However, if you sold it for another asset, then repaying your debt will be even cheaper π. $MONEY βs peg is guaranteed by two mechanisms: having a collateral guaranteeing its value (everybodyβs deposited collateral)..
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..and having a big liquidity on @CurveFinance paired to major stablecoins.
3. Smart Contract exploit: As always in DeFi
..and having a big liquidity on @CurveFinance paired to major stablecoins.
3. Smart Contract exploit: As always in DeFi
If you want to read more about this topic:
- yieldyak.medium.com/yak-guides-takβ¦
- and the evergreen thread by @cryptofishx explaining liquidation:
- yieldyak.medium.com/yak-guides-takβ¦
- and the evergreen thread by @cryptofishx explaining liquidation:
https://twitter.com/cryptofishx/status/1446901469337178116?s=21&t=bg64k_iLKzDO3X7F0fCllw
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