hi wanna ask some questions regarding crvUSD: 1. ... @curvefi

Asked 1062 days ago
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hi wanna ask some questions regarding crvUSD: 1. it's a model of concentrated liquidity + collateral lending ? 2. when providing collateral into bands, as a depositor I sign up for impermanent loss? 3. if bands are centered around the oracle price, if my liquidity is taken at (x), plus some slippage obviously, would it be later on swapped back at x+T later on and I essentially get less collateral then I deposited? from the whitepaper it seems it would not. but in the code I only see 1 active_band

asked 1062 days ago

1 Answers

Answer: Yes, CRVUSD is a model of concentrated liquidity and collateral lending. When providing collateral into bands, depositors may experience impermanent loss if their liquidity is taken at a rate lower than the oracle price and they do not receive the same amount of collateral when they are deliquidated. The whitepaper states that the bands are centered around the oracle price and that the depositor should receive the same amount of collateral when they are deliquidated as they deposited. The code does have an active band, which is designed to ensure that deposits are liquidated and deliquidated at the same rate as the oracle price, thus eliminating any impermanent loss.
answered 1062 days ago
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2. depositor experiences any losses only and only when he is getting "liquidated/deliquidated"
answered 1062 days ago

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