Here are a few reasons I can think of why people sell VAI at a discount.
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The yield on VAI is very low 2% when you can get 10-15% on other stable coins, which makes selling VAI at a discount a reasonable proposition, particularly considering it usually trades at a discount making it easy to cover your sale at the same price.
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The buy the dip crowd, if you have a good amount of expected income it can make sense to sell VAI for the crypto of your choosing, and then deposit that crypto on Venus to get a yield making your collateral level higher.
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As covered in my post A disorderly deleveraging of debt you may think there is not enough VAI available on the market for you to be liquidated. 120m mint only enough liquidity to liquidate about 2-3% of that at any given time.
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An attack on the protocol, you may be a competitor or just not like what Venus is doing and want to dump on VAI to make the project look bad, with low liquidity this is fairly easy to do, about 40k on Binance is being used to strangle the price.
Any other reasons people can think please leave a comment below.
- 1 ) Better stable coin yield.
- 2 ) Buy the dip.
- 3 ) Not going to have to pay it back.
- 4 ) An attack against Venus.
- 5 ) Other leave comment.
0 voters
If it is not an attack, what I don’t get is why it pumps back almost straight away after mass liquidations