Update README.md

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dr. mia von steinkirch, phd 2023-02-10 08:24:42 -08:00 committed by GitHub
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* alice and bob deposit funds into a lending contract (e.g., aave, maker, compound). while bob leaves his original collateral locked in the protocol, he can withdraw ~50% or more (depending on the protocol and asset) at some algorithmic rate that gets paid to alice (for providing the funds). * alice and bob deposit funds into a lending contract (e.g., aave, maker, compound). while bob leaves his original collateral locked in the protocol, he can withdraw ~50% or more (depending on the protocol and asset) at some algorithmic rate that gets paid to alice (for providing the funds).
* bob can then create a short position, reinvest for a levered long position, or withdraw money (without selling the underlying and being taxed). alice, on the other hand, generates a return on her capital. * bob can then create a short position, reinvest for a levered long position, or withdraw money (without selling the underlying and being taxed). alice, on the other hand, generates a return on her capital.
* liquidation is paid to the address that flags loans that crossed collateralization threshold (anyone monitoring the mempool and external oracles).
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