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RE: A Critical Review Of 20% APR On Stable Coins

in LeoFinance4 years ago

Yes credit card debt repayments is high because someone is taking the risk to offer capital for an unsecured loan! It’s to compensate for all those who don’t pay back their credit cards so while you who borrows pays high

The one holding the contract on that debt returns a much lower rate once you factor in the defaults

Changing the % just means you lose your liquidity to someone else who will offer better rates that’s the entire point of offering a higher rate you want the liquidity