Still a super underrated aspect of @CurveFinance's lending platform (LlamaLend). On any other crypto lending platform, if the value of your non-stablecoin collateral drops enough…
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Still a super underrated aspect of @CurveFinance's lending platform (LlamaLend). On any other crypto lending platform, if the value of your non-stablecoin collateral drops enough because of a market …
Still a super underrated aspect of @CurveFinance's lending platform (LlamaLend). On any other crypto lending platform, if the value of your non-stablecoin collateral drops enough because of a market dip, your position gets liquidated- and there is no coming back from that. Game over. On LlamaLend, your position can enter a "soft liquidation" phase, which auto-converts portions of your otherwise volatile collateral into $crvUSD as price moves against you, protecting the value of your collateral and therefore your borrowed position to avoid a "hard" liquidation. As the market recovers, it converts that $crvUSD BACK into the original asset, (essentially buying back your original collateral with the accumulated $crvUSD) so that your borrowed position can literally AVOID liquidation during unexpected market dips. Quoted tweet below is a nice demonstration of this feature in action 👇
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