Great initative, thanks for sharing! Some comments:
The origination fee is a loan amount (in zUSD), is around 20 USD and is returned upon redemption of your loan if it isn’t paid off (This fee is also known as the “Stability Reserve”).
There are two separate things here: origination fee and liquidation reserve.
In recovery mode, the origination fee is 0%. In normal mode the origination fee starts at 0.5% and increases as the volume of redemptions increases within a given period of time. As time goes on and there are no redemptions, eventually the fee comes back down to the base of 0.5%.
The liquidation reserve is 20 ZUSD. It is added to the debt when creating a line of credit and set aside. If the line of credit is closed, the 20 ZUSD is used to pay back 20 ZUSD of the debt and gets canceled out. If the line of credit is liquidated, then the 20 ZUSD goes to the user who triggered the liquidation to compensate for their gas cost.
The exchange fee is a percentage of the amount exchanged (in rBTC) when exchanging USD for rBTC, with the minimum fee being 0.5%.
Please note that swapping isn’t the same as paying off your loan, which is free.
should say: “The redemption fee is a percentage of the amount of RBTC received when redeeming ZUSD for RBTC, with the minimum redemption fee being 0.5%. Please note that redeeming ZUSD isn’t the same as paying off your loan, which is free.”
TO PAY THE PENDING DEBT IN ZERO YOU WOULD ONLY HAVE TO REDEEM THE FUNDS OF THE LENDING PRODUCT AND EXCHANGE THE BPRO FOR {XUSD OR ZUSD FIND OUT} AND PAY THE DEBT IN ZERO, KEEP THE DIFFERENCE OBTAINED FROM THE INCREASE IN THE PRICE ACTION + LENDING YIELD.
Here I think the path to paying back the debt would be BPRO → XUSD → ZUSD.
HTTPS://BRIDGE.SOVRYN.APP/
I recommend using the bridge from the Sovryn Portfolio rather than this bridge web page. The bridge web page will be taken offline after the new BabelFish UI is released. So just change that link to Sovryn
CRAB STRATEGY
haha love this name. I’m not sure I understand the “PAYBACK RBTC” step in the capital flow though. can you explain what you mean by this?
A couple of comments on this strat:
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If you deposit the ZUSD you borrow into the stability pool, then you might be able to automatically BTFD if there are liquidations. Of course, if there are no liquidations, you can simply withdraw the ZUSD and buy the RBTC on spot market to BTFD.
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This strat can also be combined with the Stable Strat, so while you wait to BTFD you can be earning interest on XUSD in the lending pool.