Compound will introduce credit limits on 10 coins

Home / Compound will introduce credit limits on 10 coins

Compound will introduce credit limits on 10 coins at the end of November: COMP, WBTC, UNI, SUSHI, AAVE, MKR, BAT, LINK, ZRX and YFI.
The decision was made by a vote offered by the Gauntlet site in the Compound DAO. According to Gauntlet, the move would adjust the risk parameters in Compound v2 and help avoid bad debt, as was the case with Aave.

Aave had previously incurred $1.6 million in bad debt due to a large short position on the CurveDAO token (CRV), which was facilitated by low liquidity on CRV.

Leave a Reply

Your email address will not be published.