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RE: Polycub: XPC Loans

in LeoFinance3 years ago

Like I said, a moving average will likely need to be used to avoid liquidity pool hacking, and also polycub has pretty thin liquidity, so liquidating too many loans at once could create a devastating long-squeeze that crippled the price of polycub by chain-liquidating bad debt.

The collateralization rate is a significant issue as you mentioned. To be in the safe side, I believe Hedging can be a solid strategy to prevent the system being manipulated.

In terms of the existing liquidity, I think there may some more inventives for PolyCUB farms in accordance with the amount of collaterals + Bonds being created. It may turn out like current APY + Bonding Bonus + Collateral Bonus for PolyCUB farms to diminish the risks if possible 🤏

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