☕️ gm CT
let us talk about how CandyLend on
@NomismaNetwork actually works especially on the borrowing angle
when you borrow, you have to offer BTC as collateral and borrow USDT against it. you keep your BTC, get liquid cash, and pay interest only on what you borrowed.
The collateral ratio required is 120%, tho some defi lending platforms offer lower while there are others with higher ratios
you must keep a close eye on your collateral ratio because unlike physical assets, btc value fluctuates
example: if you offer $1200 worth of BTC as collat. and borrow $1000, your ratio = 120%. if BTC price should drop and that ratio falls too low, you either add more collateral or repay some of the loan to avoid liquidation.
do you think borrowing in crypto is resourceful or a total waste of time?🤔