Ive been thinking,
If I had a coin backed by property, or highly valuable antique e.t.c would I be able to use it as collateral on compound?
What requirements would need to be met?
What percentage of the collateral would you be able to borrow back?
What percentage of interest would be charged?
1st, Im not sure of a coin backed by property, but it would probably never be listed. why? what use does it bring to compound? it will be pegged to that property/value thing, and only you would be able to hold it, and the supply would only be one, since there is only 1 of that highly valuable antique or property and it can’t really have multiple. also there would need to be a price for it, which considering the use and people wanting it, would be extremely low
2nd: price, posted by coinbase or some other reporter (hopefully added at some point), liquidity, use (like useful to borrow or just a useful coin in all), but there really isn’t a list of requirements as governance is for the community now.
3rd: actually not sure
4th: actually not sure, although im sure the supply would be very low (like eth almost) but no curve, and borrow would be very high, all the time. as if it isn’t borrowed there’s 0 borrow and if theres 1 borrowed then its 100% interest. it poses kind of a monopoly on suppling a coin on compound.
1 Like