Risk isnt being liquidated, value is. And xPOLY is really just POLY in another form. That is being held in the Treasury and each person has claim to that via the xPC holding. So if you have 10 xPC, you really have roughly 150 PC right now.
What a loan does is allows this to effectively be accessed and put to use. I dont know the details but the mention of a stablecoin adds an interesting element.
As always it is about the details. At this point, we just know that having a 50% access rate should not add a great deal of risk to the ecosystem especially if the emissions of PC is low when the feature is released and the protocol is generating some nice returns to buy PC.
Posted Using LeoFinance Beta
Thank you. I look forward to digging into the details when they are published!
Posted Using LeoFinance Beta