>loan started
>you back your 10k USD loan with a crypto
>previously 10k crypto drops to like 2k value
>borrower walks away because fuck it, lender only has the 2k collateral
there is nothing about this scenario anywhere.
SALT SCENARIO
Chase Nguyen
Brandon Sanchez
The lender can liquidate the asset if it starts to drop.
Dominic Myers
yeah so lenders need to sit there and monitor crypto volatility as well.
crypto goes down 60 percent overnight, theyre fucked.
this is exactly why SALT wont be big.
Owen James
>>previously 10k crypto drops to like 2k value
>>borrower walks away because fuck it, lender only has the 2k collateral
>there is nothing about this scenario anywhere.
autosell oracle kicks into sell collateral at an exchange (heard of limit sells?) before it hits a value that is below the lent amount
Jack Williams
If btc drops that much were all fucked regardless
Carter Smith
Yeah mate, lenders of 10s of thousands of dollars are sitting there waiting for blockfolio alerts and then log in to liquidate the asset
Isaiah Reyes
what will the % stop loss be?
If it's only like 10% then big enough money bags could crash the market enough to force all the sell off of loans and cause a chain reaction?
Gabriel Phillips
>not in the whitepaper or the website
Jason Lopez
You retards do get it unspoken use case is getting fucking money OUT OF CRYPTO and not paying taxes?
Samuel Perry
>You retards do get it unspoken use case is getting fucking money OUT OF CRYPTO and not paying taxes?
>HUR DURR MY LOOP HOLES WILL STAY THERE FOREVER
Matthew Nguyen
Jeremiah Roberts
>In the event that there is a decline in the value of the digital assets behind the loan, the Oracle will contact the borrower with a couple of options to bring the loan performance back into line. These can include depositing further collateral to bring the LTV back in line, making additional cash repayments to reduce the balance of the loan, or in the event of neither of these being possible, to liquidate a portion of the collateral to bring the LTV back into line.
Nicholas Perez
Ive heard alot of talking about potential money laundering with the use of SALT, lmao.
Nathan Nelson
thx babes. im done here.
Dominic Brooks
so as a borrower you gotta monitor your position too
I can't see them being like "have a week to make your mind up pal no worries"
Ian Sanchez
>yeah so lenders need to sit there and monitor crypto volatility as well
What are smart contracts?
Alexander Clark
They send you texts or emails and shit when you have to do something as a borrower
Isaac Bennett
What is an auto liquidate feature.
Eli Bailey
yeah but I mean there will be a time limit on those texts and emails.
Which is fine if you have liquid capital, but if you're over leveraged (for example you've reinvested the loan amount) then you could end up being short.
Josiah Hill
A more interesting scenario. Borrow on bitcoin use money to buy more btc, then borrow on that bitcoin, then buy bitcoin then borrow on that bitcoin. Price drops 1 percent, then crash market with no survivors.
Leo Hughes
What everybody is missing is that btc futures is going to stabilize the fluctuations and make salt much more viable
Xavier Sanchez
unchained-capital.com
I bet salt does similar margin calls
Evan Sullivan
Lenders adjust interest rates accordingly, if the market seems risky the interest rates will go up.
Henry Ramirez
you can only have one salt loan at a time to prevent this positive feedback loop.
Charles Morris
I can't wait for this shit to hit. Going to put up Bitcoin for USD loan, then take that loan and push it back into Bitcoin and Shitcoins and ride this shit up or into the ground broke.
Justin Anderson
They explained this shit like 50 times already.
Holy shit are normies this stupid?
Luis Howard
my plan exactly. The only thing limiting most people's crypto growth is lack of funding capital to buy more crypto. SALT is going to make crypto explode upwards when every person has 2x buying power and half the crypto is locked up in a loan so it can't be sold. SALT BASICALLY TRANSFORMS ALL CRYPTO INTO STAKED COINS.
Dominic Parker
jesus that can't be healthy
Jonathan Cook
true
Adam Williams
Holy shit that was a good kek
Dylan Hernandez
SALT holds an extra 25% of your crypto, so if it tanks they can sell it in time to not lose anything.