Myles
@myles-cooks
Some professional news: I joined the team at Lava. Lava makes it easy to borrow against your bitcoin without giving up self-custody. Your collateral is always verifiable on-chain and cannot be rehypothecated. We’ve got lots of amazing things in store. Please reach out if you’re interested in learning more!
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Kieran Daniels
@kdaniels.eth
Very cool! Who is lending and how do defaults work? This is a strong narrative imo
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Myles
@myles-cooks
Lenders are large capital pools we’ve onboarded, but the loans happen automatically via the contract. The loan terms are programmed into the contract. So if you default, your loan gets liquidated, the lender gets their capital back, and the rest is returned to you. Same thing if you get liquidated because of a price drop. However, you can always pay off your loan early with no fees or add more collateral if you’re getting close to the liquidation threshold.
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