Quote from: Tkaehinko on April 26, 2021, 07:13:27 PM

Quote from: Caulddell on April 26, 2021, 06:18:37 PM

Quote from: URDANETAN on April 26, 2021, 03:59:39 PM

The significant contentions against the pooled-security model are that, on one hand, the evaluating depends on outer feeds, and then again, it is difficult to construct optional business sectors. Besides, journalists can't sell explicit alternatives when they need, as far as possible the adaptability of choices techniques.

The price of assets in the liquidity pool is set by a pricing algorithm, which is constantly adjusted according to the trading activities in the pool. If the price of the asset is different from the global market price, arbitrage traders who take advantage of the difference in cross-platform prices will benefit from the difference.

If the underlying code is unaudited or completely secure, DeFi users will face other risks, such as smart contract failure. Before depositing any funds, make sure you understand all the risks.

Pool participants are collected together in the pool as option writers. Therefore, if the market makes drastic changes that are not conducive to option sellers, there may be risks. See the simulation here to understand the financial behavior of the mortgage pool.