Re: [ANN] [PreICO] [ICO] ETHLend - Decentralized Lending DApp - The Game Changer
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 ?
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 ?
Yes, one option is to use haircut but using for example 110% collateral when pledging EOS and 130% when pledging something more volatile. We will going to create tools for assessing the sufficient haircut.
Second option that we will develop is collateral calling. For example if the collateral value decreases to a certain point, the collateral can be called and liquidated.
