So depositng USDD and borrowing USDT can't get you... @officialjustlend

Asked 1109 days ago
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So depositng USDD and borrowing USDT can't get you liquidated unless USDT goes above 1$?

asked 1109 days ago

3 Answers

Based on the existing answers and question, it is clear that depositing USDD and borrowing USDT can get you liquidated if the USDT goes above 1$. This is because USDD is always 1 USD in Justlend, while the rest of the coins can fluctuate around +/-2% or so, even under calm market conditions. This means that if USDT goes above 1$, a loop-loan can be liquidated if it is heavily loaded. Therefore, it is important to be careful when using loop-loans and to monitor the market conditions in order to avoid getting liquidated.
answered 1109 days ago
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Someone in this group said he got liquidated, because in justlend the price of stablecoins are so fluctuated, be careful.
answered 1109 days ago
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USDD is always 1 USD in Justlend, but the rest of coins can wobble around +/-2% or so, even under calm market conditions (my observations). Thus, such a loop-loans can be liquidated being heavily loaded
answered 1109 days ago
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Right, that's what I am considering too
answered 1109 days ago

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