⭐ Merited by o_e_l_e_o (4)
Quote from: larry_vw
But there is going to be NO perfect stablecoin.
Quote from: author o_e_l_e_o
Agreed. So I never use them.
Yesterday I noticed some person on HodlHodl was trying to borrow like $10,000 USDC at like 2% APR. wonder what he plans to use that for.
He's taking a risk that the platform he stakes it on doesn't go belly up and the lender is taking a risk that USDC won't suffer any type of depegging event during the loan period. I am not entirely sure but I think the lender also has a risk exposure to the collateral have a price spike down such that it cannot be liquidated at the loan amount but only less.Again, this is solved by using cold, hard cash, which obviously can't be charged back. There is also the other party's account reputation to consider. Is someone going to risk their account with 1000+ positive feedback to scam you out of a few hundred bucks?
Nope. I wouldn't expect them to. Same reason I buy from sellers on ebay with good feedback ratings. Those type of sellers care about keeping a good rating so I know they'll ship fast and provide a tracking #. I've found it to be very rare to ever have any issue with sellers like that.Quote
Exactly. Start small, choose reputable trading partners, trade with the same person multiple times to build further trust, and don't use methods which are easily reversible.
Thanks for the tips.