Quote from: btcltcdigger on March 14, 2020, 07:57:09 AM

Quote from: SiverSurfer on March 14, 2020, 07:35:17 AM

OK, I am experimenting it before going into the plunge. Here goes the screenshot, for record keeping ;-)

PS: It has dropped from 20+ % to 11.46% in two days, probably due to the heavy liquidation that happened, though I am still wrapping my head around the causation aka "does interest rate go up with BTC price goes down?"

I believe the interest rate goes up with the demand.
People have alot of money in compound DAI, and now that the market is down, people are borrowing DAI to invest in cheap BTC/ETH.
By doing so, the demand grows, and i believe, with it the interest %.

Just like Uber, if there's a shortage of free drivers, the price goes up.

I am actually thinking of converting some of my USDT to DAI to play with it. I am fully invested mentally into crypto and the point of lending is to learn, the best way to learn is to do it (and hopefully not get burnt LOL)