Hi
I think I have all the blanks, and understand the basic concept of where the value comes from and such .. The only question I have is, if the original tokens held as collateral devalue to less than the amount repayable, and the security is forfeit.. how is the difference recovered to satisfy the transaction ? or is the balance lost ?
Hi, supernoob.
Usually a haircut needs to be placed, for example 120% collateral or 110% or even 150% depending on the token.
take a look here too, if want to test:
https://bitcointalk.org/index.php?topic=2142170.0