New Backup Pool Solution: A Remedy For CRV Liquidation Crisis?
The New Backup Pool Solution Lightning HSL’s proposal is centered around the introduction of a mainstream stablecoin backup liquidation pool. USDT, a commonly used stablecoin, serves as an example. Under this plan, any user looking to acquire discounted mortgage products can deposit USDT into this backup pool. Users on the brink of liquidation could then use the USDT in the backup pool to repay debts, subsequently withdrawing their collateral to sell to the backup pool at a discounted rate. advertisement However, there is skepticism about this idea. Analysts contend that even while this method may approximate the stable pool proposed by Liquidity, it might not produce the desired results in practical settings. Concerns arise due to the significant differences in the collateral assets between the two. Critics worry that customers buying reduced CRV could quickly bring the market back to its previous crash, putting their positions at risk of liquidation. The...