Isn't Salt Lending some type of margin lending but with 100% leverage this time?
If we consider Crypto assets as Stocks and the Money that borrowers receive as margin loan then what would happen if say the value of blockchain assets drops by 50%?
Wouldn't that create chaos in crypto-currencies and eventually cause it to crash?
Not sure if they're trying to help expand cryptos or hurt them! Can you pls explain?
Not just that what if the stock market crashes and suddenly you have no cash access? They get to keep your cryptos. Banks etc know the market will crash and this way if people are not careful with the loans the banks will remain with cryptos and you with nothing, assuming you don't invest it back into cryptos. It is a great idea people just need to be careful. A loan is a serious endeavor no matter if it takes place in a bank or in cryptos.
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