I’ve taken ZERO for a test drive with a cold wallet and a browser wallet for a test run. I’ve done the staking, purchasing more BTC with it, etc. All works great for that. However, what I need to do is get a large amount out into Fiat. This is when it became less favorable due to the limits to bridge from DLLR to XUSD and then to USDC or USDT.
My plan was to get USDC or USDT into an exchange and withdraw it in USD. But, the limits to doing this are very small (I think it was 1,500 a day or less) and that would cost a small fortune.
I know I can buy BTC with the ZERO loan and sent that RBTC to any BTC wallet, sell the BTC for USD and there are no limits there. However, that will be a taxable event, which is what borrowing from your BTC is supposed to help with.
Any ideas or suggestions would be greatly appreciated it.
PS- I’m aware of all the centralized ways of doing this, which I rather not do, for all the reasons we have already seen.
I ran into the very same issues at the scale of a $10K loan.
The bridge had a few hundred USDT/USDC limit. It would be great to have the bridge limits on display before the process even starts.
Also, the need to 3-4x overcollateralize to avoid redemptions becomes a real issue with larger amounts, where e.g. Liquity needs only 2-3x. With lower collateralization factors, I had the impression that selling of DLLR/ZUSD for USDT/USDC on the AMM must have had an immediate impact on the ZUSD peg triggering immediate redemptions against my own collateral…
When will the Sovryn Finance bank launch that was previously announced? With such a bank there would no longer be a need to use the bridge. An exchange listing of DLLR would also help. Bitfinex supports RBTC - when DLLR?
Very true, regarding the overcollateralized amount needed for large amounts is a deal breaker for now. I was looking at a high-dollar loan too, and it would be cheaper to do it the traditional way paying 7% or higher in interest. Which I will not do since I don’t see the reason you would have to pay high interest on a collateral loan since they have your Bitcoin…even if they claim not to re-lend it, they still hold it.
I guess for now all we can do is wait for the sovryn bank.
I just want to let the great guys over at sovryn now that if Zero is not blasting off is because of the limits in place and how many steps you have to do to get Fiat. Let’s be real if you are borrowing against your Bitcoin, it’s likely because you want Fiat and not Defi so you receive SOV instead.