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     8 months ago  

    Awesome thanks! There is still something about the borrowing money that really scares me, but who knows. How much time do you have to pay the loan back?

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     8 months ago (edited) 

    How much time do you have to pay the loan back?

    You aren't allowed to pay it back for 30 days.
    You're never required to pay it back.
    They don't want you to pay it back, in fact.
    Because they have to mint Rune to pay back the collateral.

    [-]
     8 months ago  

    They'd just rather keep my ETH or BTC I am sure. I'm just trying to figure out what a typical move would look like. So you don't get your collateral back as the same token? You get it back as RUNE? Maybe I should just go play around with the platform a bit and see if having eyes on it makes more sense!

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     8 months ago (edited) 

    I didn't explain it very well in this one but I did in my other posts.

    • The collateral you send them is dumped for Rune.
    • This Rune is then destroyed.
    • Your loan is measured using an internal non-tradable stable-coin called TOR.
    • They note on their ledger that they owe you back X collateral (BTC.BTC or ETH.ETH).
    • When you pay back the TOR loan (using any token) they create Rune to pay you back.
    • The maximum amount of RUNE possible is 500M (circuit breaker).
    • Several mechanics in the Thorchain ecosystem burn Rune.

    You do need to test it out yourself it will make more sense.