I’m about to borrow in venus protocol and I need clarifications about few things. If any of you can help me out with your experience, I would be really glad.
I’m going to supply ADA as collateral, I want to get the loan in BUSD.
What will happen if the borrow APY for BUSD gets changed after I borrowed?
Why do we have different APYs for loaning stable coins? as they are all stable I can’t understand why a person would go for the higher APY stable coin because they can always loan BUSD (-7.53 APY) for example and convert it into USDT if they need to, which if you took the USDT as a loan directly, it’ll cost you -13.36APY at the time I’m writing.
What will happen if I wanted to repay early in full, do I still need to pay the entire APY for the year?
I understand that if my collateral value drops which mean, ADA drops in a significant amount, there is a risk I can be liquidated (but also I know if I add more collateral I can stop the liquidation), besides that, are there any other risks that can liquidate my collateral?
So those are pretty much all I need answers to.