Re:Ethereum Isn't Fun Anymore
by lottin on Monday February 22, 2021 @11:24AM
(#26226307)
What happens in the event of default?
[ Parent
| on HN ]
It's over-collaterized, so if you fall below the 150% minimum collateral ratio, maker smart contract could liquidate the asset to cover the loan and then return the remaining 50%-liquidation fees back to you. As long as you're conservative in your borrowing (as in you borrow up to 25%-50% of your holding), your chances of getting liquidated are pretty slim.