CryptoSlate says XRP lending model leaves depositors with 90% of a bad loan’s loss
CryptoSlate reports that splitting the same 100,000-token bad debt across ten loans cuts modeled depositor losses from 90,000 to 4,500 tokens, with the same reserve and settings.
TLDR
CryptoSlate describes an XRP lending model in which a single 100,000-token default leaves depositors with a 90,000-token loss, despite reserves twice the loan’s size. Splitting the same bad debt across ten loans reduces the modeled depositor loss to 4,500 tokens without changing the reserve or settings. The key detail, CryptoSlate says: the cover cap resets with each default.
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