I don’t understand why MIM isn’t redistributed to different cauldrons that need them. For instance, there are millions available to borrow in AVAX/USDC but zero for wMEMO. Why is this? It seems good for the whole ecosystem to keep them more balanced so that products that are in demand actually get to be used by people who want them.
They get scooped up fast. I’m assuming they are trying to stay below 5 or 6 percent as to not flood this one use. It will tank the price of time. There is another way you can use the system to make good gains without folding collateral
as far as i am aware when dani spoke about this , it was due to balancing risk as wmemo is directly connected to the ecosystem so having loads of it as collateral would be more risky.
Ah nice, that definitely makes sense. Thanks for the answer!