@Raegwynonyxia TLDR a user’s underlying stETH yield accrued only on the overcollat portion proportionate to the system LTV ratio @ time t (i.e more than vanilla stETH yield if below system LTV ratio), whilst those w higher LTVs can do whatever tf they want w boxETH w 0 IR…
@Raegwynonyxia … (or all boxETH minted for that matter, j more w higher LTVs) whether that be swapping boxETH for any other asset or LPing boxETH/stETH
However, in the event that boxETH goes below peg, whilst user x’s LTV is too low, his CDP can be “resolved” (similar to LUSD redemptions tbh)
However, in the event that boxETH goes below peg, whilst user x’s LTV is too low, his CDP can be “resolved” (similar to LUSD redemptions tbh)
@Raegwynonyxia So if boxETH mkt price = .9 stETH, a resolver can flashlend stETH -> buy boxETH on mkt for .9 -> repay up to 25% of a user’s boxETH debt -> receive stETH 1:1 -> repay flashloan + keep diff, effectively keeping boxETH’s “soft peg” intact thru buying & burning.
@Raegwynonyxia Btw given the resolve fee formulae below, resolvers will obvs pay off CDPs w the highest LTV ratios to pay minimal fees/maximize profits
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