These are always way too complicated for anyone to actually understand what the hell is going on. Also a juicy 13% origination fee rate 🤯
20 sats \ 6 replies \ @ama 29 Jan
At 0% interest and for as long as you want to keep it.
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10 sats \ 5 replies \ @OT 29 Jan
What kind of stable coin are you getting?
You mean its 13% origination fee and thats it forever?
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10 sats \ 4 replies \ @ama 29 Jan
Yes, you don't pay any interest (0%) for as long as you want. You get ZUSD, that can be converted to others on the dex.
What I don't know is how to get fiat into your bank account (to buy a house or something) and prove it's a credit, to not incurre on a taxable event.
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10 sats \ 3 replies \ @OT 29 Jan
That doesn't make sense to me. Why would someone take the other side of that trade?
I borrow 100k, I owe 113k. I pay it back in 20 years and the lender earns less than 1% PA.
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0 sats \ 2 replies \ @ama 29 Jan
Because ZUSD is backed by BTC, your collateral, not by USD like the usual stablecoins. Nobody's actually lending the money, it's actually your own.
If you pay it back in 20 years, you get your collateral back in 20 years, or you could keep borrowing more ZUSD when the collateral BTC goes up in price.
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0 sats \ 1 reply \ @OT 30 Jan
I'll have to look into it a bit more. Who prints the ZUSD then? Is it just the protocol or Sovryn?
Do you think there's any chance RBTC can lose its 1:1 peg?
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0 sats \ 0 replies \ @ama 30 Jan
Indeed, ZUSD are minted when you borrow them and burned when you give them back.
I don't think there is any chance for the peg to be broken, but when you move from the base layer there is trust involved, in the case of RSK you trust a federation (powpeg).
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there's also the more classic APY based https://sovryn.app/borrow/fixed-interest
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