So, I can buy more crypto, and then use it to mint more, and then buy more, then mint more, then buy more again? Mint, buy, mint, buy, mint, buy?
Why is USDP called USDP? What’s with the P?
It stands for ‘Pay’, a nod to Unit Protocol’s original name – The PayCash
😬 Risk awareness 😬
So, I’ve deposited my collateral (ANY), and minted my USDP. I set the liquidation price at $1 (ANY’s price is $2.90). So, I need to keep an eye on the price of ANY. If it gets close to $1, then I should pay back the borrowed USDP and then I’ll be able to withdraw my collateral for no penalties. Right? And if I don’t do that, I’ll lose 15% of my collateral. Right?!
If I withdraw the max collateral that I’m allowed, what does that bring the health factor to?
Somewhere around 1.03. That's risky, because when it reaches 1, you will be liquidated.