Why? Because they perform differently depending on how a system uses them.
A thread:
1) Leverage trading on exchanges carries enormous risks to your capital.
Heres a scenario:
Open a long BTC/BUSD leveraged position with $1000 as your account balance. You used 20x leverage to enter a trade worth $20,000. If the price of BTC were to drop by only 5%, your
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Sep 20, 2022 • 13 tweets • 3 min read
Backed entirely by PLS, USDL will be the most decentralized stablecoin we have.
Its peg is robust, and the stability pool is one of the best kept secrets in DeFi.
Here’s how it keeps the $1 peg, and how the @liquidloansio stability pool can help you accumulate cheap PLS:
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Liquid Loans is a decentralized borrowing protocol where you can lock up PLS and borrow against it.
Much like MakerDAO’s DAI, borrowing takes the form of minting a stablecoin against the collateral – in this case, USDL.
Sep 19, 2022 • 5 tweets • 1 min read
@POWERCITYio follows some core principles that we believe leads to longevity:
1. Have useful tools and services. Not a do nothing meme.
2. Usage of these tools has fees. People typically are willing to pay small fees when a tool makes their experience better.
......
3. Instead of a core team owning the protocol and collecting 100% of these fees, allow believers a chance to own the protocol and fees as well. This is a prime example community owned, community driven.
4. Non inflationary, and fees only paid to stakers....
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Aug 25, 2022 • 9 tweets • 2 min read
Most stable coin protocols use auctions.
Not Liquid Loans.
This is because auctions suck and here's why:
With any crypto auctions, it's like this:
Collateral is taken away from borrower and placed up for auction with the hopes that people will bid high enough to cover the debt the borrower had.
