what do you think about the usefulness of an iADA asset? the CDP would be stable and people would not have an incentive to close their positions so I would put a limit where they can borrow 50% of what they have deposited, so that sooner or later the CDP will be closed. The use cases of iADA would be multiple, sell in USD to go short on ADA, deposit iADA and ADA in DEXs, sell iADA for ADA by gaining staking on the collateral and on the purchased ADA, buy NFT or other tokens and then repay the debt in ADA. More use cases will be created when CDPs can be created with stablecoins as collateral by withdrawing iADA.
Currently the problem with the protocol is lack of liquidity, but I believe that an iADA asset can attract a lot of liquidity
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I am not sure to fully understand the benefit of an iADA. Given that this CDP would have a collateral, I would have to lock more ADA for less iADA compare to spot. For shorting ADA, I could lock my ADA to borrow iUSD and to go long, I would lock my ADA for iUSD to buy ADA.
I may have missed something
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This would be interesting to see in action, but maybe with a different collateral than ADA. Shen? since the price is correlated to ADA? or a stable.
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Dont support this like stated before… 150% collateral rating sure… 1 iada = 1 ada… cdp would NEVER get liquidated and NEVER be forced to close.
Everyone could fold ada indefinitely, in theory.
This is not a good proposal.
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I agree…why would you want to pay a 2% premium for minting iADA knowing that position can never be liquidated. Definitely not a good proposal.
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i don’t like this one it doesn’t make sense
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As far as I understand how this protocol works, this is technically not possible.
Your ADA gets locked in a smart contract, but still belongs to you. So everyone owns 100% of their ADA. And still receives staking rewards, that’s the magic of it.
To fold your ADA you would need to lend some of your ADA away, so you wouldn’t own all of your ADA and not receive full staking rewards anymore. It is not possible to create ADA out of thin air. Your Collateral would go down when you borrow ADA
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We already have ADA, please this makes no sense
i agree with him, not good at all.