Borrowing DAI vs other stable coins on AAVE
I don't understand if there is an advantage to borrowing DAI instead of other stable coins. Currently DAI has a borrow interest rate of 30% and USDC has 7.5% for example. Can't someone borrow USDC and buy DAI and supply it and gain %12(DAI supply interest rate)-7.5%(USDC borrow interest rate)=4.5% interest on it? Is there a reason why interest rates are different for different stable coins and for DAI to have such high interest rates?@Ethereum @Telegram
Posted by Kairenn
on Reddit.com (r/ethereum) January 24, 2021 at 03:38AM Thread Link: https://ift.tt/366kMqO
I don't understand if there is an advantage to borrowing DAI instead of other stable coins. Currently DAI has a borrow interest rate of 30% and USDC has 7.5% for example. Can't someone borrow USDC and buy DAI and supply it and gain %12(DAI supply interest rate)-7.5%(USDC borrow interest rate)=4.5% interest on it? Is there a reason why interest rates are different for different stable coins and for DAI to have such high interest rates?@Ethereum @Telegram
Posted by Kairenn
on Reddit.com (r/ethereum) January 24, 2021 at 03:38AM Thread Link: https://ift.tt/366kMqO