Necc
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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.
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