Lets say I have 1 ETH and it equals to 1000 USD ri... @curvefi

Asked 1078 days ago
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Lets say I have 1 ETH and it equals to 1000 USD right now. I go to Curve and borrow 800 crvUSD. After that Ether price dumped to 100 USD. (My position will be liquidated) After that it pumps to directly 1000 USD again.. Will LLAMMA rebalance my debt position (buy Ether etc) or due to high volatility, am I hard liquidated?

asked 1078 days ago

2 Answers

In this scenario, your position would be liquidated due to the high volatility in the Ether price. This is because when you borrowed 800 crvUSD, you would have been required to post 1 ETH as collateral for the loan. When the Ether price dropped to 100 USD, the value of your collateral would have dropped below the required minimum, resulting in your position being liquidated. When the Ether price then pumps back to 1000 USD, the collateral would be sufficient to cover the loan again, but the position would already have been liquidated. Therefore, LLAMMA would not be able to rebalance your debt position and you would have your ETH back.
answered 1078 days ago
0
You would have your eth back
answered 1078 days ago
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Any comment? @kendrickllama555
answered 1078 days ago

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