Number go up

So what happens if we have a bull market?

As the price of the underlying supplied collateral in the Necc protocol goes up,

  • The protocol will be over collateralised overtime as the redemption rate + fees reduces the collateral ratio.

  • People can use their minted NDOL as collateral within the system, increasing their leverage position size to risk on.

  • The funding rates go up with increased demand meaning it costs fees to borrow more collateral from the system on open long and short positions.

  • Plebs who dump their NECC get rekt and left behind.

PreviousLiquidity Flow diagramsNextNumber go down

Last updated