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>Earning interest

He's talking about "DeFi" ("distributed finance") - the current craze in the Ethereum world. Various groups are offering significant interest rates for loaning out your Eth. It's hard to see how it's not another speculation bubble waiting to burst.




DeFi loans are typically very over-collaterized. Due to this, they represent way less of a risk to the economy than traditional credit.


I've looked into using these a few times, and I'm honestly more worried about smart contract bugs.


How much collateral do you need for an asset that is as volatile as a cryptocurrency?


I believe makerdao sets it at 150%. If it ever drops under that amount they auction off the underlying asset on the the open market.


[flagged]


Jeez, the quality of HN comments these days is not what it used to be.




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