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/biz/ - Business & Finance

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20802486 No.20802486 [Reply] [Original]

You don't want to start trying to pull your funds when you start hearing about others doing it.
Nexo is insolvent. If you have LINK in there, withdraw it immediately or you will not get anything.
You're about to get gox'd.

>> No.20802677

>>20802486
I tend to believe him

>> No.20802828

Doubt it, they are running lots of ads....

>> No.20803317

From previous threads the suggestion is their business model entails selling deposited crypto for fiat and loaning the fiat. Given links large consistent moves up they could be very deep in the hole to be able to buy back enough link to return to depositors. Could this effect other companies linked to them in some way if they go down? Aave? i've not read up on the lending protocols myself

>> No.20803409

>>20803317
Aave is totally decentralized, transparent and based on smart contracts. There’s no such risk with aave. The only risk is with anything that involves giving away custody of your crypto/centralized entities.

>> No.20803638

>>20802486
i never had any on there

>> No.20803684

>>20803409
Is there some exposure though? Lending entails a certain degree of accepted risk, if someone had deposited cryptoX amount Y what's the max they could take as a loan of link YX. How does Aave cover bad loans? I'm trying to look at it now not intending to suggest any link between aave and other parties or that its not a sound product.

>> No.20803879

>>20803684
There is a risk related to this yes.

People can borrow up to 65% of their collateral. If their loan rises to 70% they can be liquidated.

In theory if LINK were to rise 30% in a few minutes it’s possible that the loan would exceed the collateral before anyone could liquidate them.

>> No.20804238

>>20803684
Aave only lets you borrow less (way less) that what you put up as collateral.
If ai put in $5000 worth of X I can only get like $2500 worth of Y
If X tanks to about 90% of the loan, then anyone can liquidate it by taking my collateral and paying my debt, while getting a 10% discount, most coins that can be used as collateral are well established and don't tank overnight, so there's lots of leeway
If Y moons 2x I'm in trouble, because I borrowed Y and need to pay Y, that's why most people borrow stablecoins, then use them to buy Y

>> No.20804308

>>20803879
Interesting, that's definitely a conceivable possibility

>> No.20804570

I tried but I’m getting an error message that says that there’s a limit to how much I can take out right now. I tried a lower number but still getting the same error. What the fuck is going on?

>> No.20804616

>>20804570
You got goxed niggah!

>> No.20804648

>>20803879
so if you were to automate taking out of loans waiting for % increase rapidly enough to overtake the collateral before liquidation you could arbitrage yourself by defaulting and repurchasing your collateral?

>> No.20804937

>>20804570
rip

>> No.20805865

>>20802486
didn't Nexo try and short link or some shit at $5 and they got wrecked?

>> No.20805891
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20805891

>> No.20805955

>>20805891
Kek I just can’t get over the fact that he looks like Sergeys evil twin. The meme writes itself.

>> No.20805968
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20805968

>>20802486
>You're about to get gox'd.
s'true