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PRV as Collateral Loan

#1

Staking reward of prv was quite high atm including liquidity reward. This is one of point to attract user to buy and hold of PRV. Than without another utility of prv. Soon or later it will be not a good sign.

So, perhaps to speed up. Any aditional utilities of prv by adding feature loan within dex wallet and prv as collateral.

It will increase to minimize user to push selling prv.

If i need quick money without selling prv. I can stake prv as collateral to get usdt or any stablecoin.

Hopely within a short of time, available this future.

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PRV Coin Utillity Summary - The Most People To Know
#2

Yeah, but if the price drops, there needs to be other assets to collateralize. Your not able to liquidize PRV all at once, you lose significant value if you do that.
If you wanted this feature we would first have to:

  1. Create a system to optimize liquidating PRV using multiple liquidity pools (cashing out in different coins). Making it less risky and lessening the strain on the pDex. However since we are adding other coinswap dex’s to Incognito, it lessons the need, however it comes with a higher fee.
  2. You would have to put way more PRV as collateral then normal crypto backed loans. Probably up to 2-5x the original value. It depends how much liquidity are in the pools but since that’s variable, you have to account for that.
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#3

Probably to create similar feature of liquidity trade such as prv/usdt. But the system is diferent.

Dex liquidity is for selling and buying.

For loan feature is not selling but borrowing.

User who add loan liquidity of usdt. Getting reward 8% same as trading liquidity.

Loan repayment using prv base on price value.

Collateral prv by borrower become staking prv of usdt lender untill repaid by borrower.

Stability fee is 6 to 8% of usdt. And it will goes to lender of usdt.

So, the lender who add liquidity of loan. Will be getting 8% grant from project fund. And another 6% from borrower. Also staking value from borrower collateral of prv.

I think, it will get more utility for prv.

Therefore, usdt holder getting benefit of rewards.

And for prv benefit is more utility and more prv in hold not selling.

#4

In the beginning didn’t https://www.myconstant.com/ let you borrow PRV at least? It was only a promotion so it’s over now. I don’t know if they watch this space.

#5

Yup…, constant no more provide collateral of prv for loan atm.

#6