Borrow against veBank

[SGN]

Similar to vAlgo, could/should we be able to borrow against our veBank to make better use of the boosted farm rewards

[lobo]

thats not possible since you wouldnt be able to liquidate someone since their BANK is locked

furthermore BANK should not have a collateral factor of sth higher than 0 until it has a deep liquidity pool (see the MNGO exploit)

[mrJoker]

Good Question, but I would disagree with this.

[nmadon65]

Don’t think this should be done. See Paul’s response to Defly proposal. I think it applies here as well.

Adding DEFLY to the lending market

Some color to add here, The v2 algofi protocol has BOTH a collateral factor and a borrow factor. The borrow factor has not been used yet but basically it makes borrowing of volatile assets feasible by requiring multiples of the normal amount of collateral. So a market with a borrow factor of 2x will require twice the collateral to back a borrow position. This lever makes non blue-chip ASAs more practical without exposing the protocol to outsized risk. All that said IMO the following 3 things n…

[SmallShiva]

No. I believe the purpose of the rewards are to bring capital into the system, not to make rehypothecate internal capital already. So, being able to borrow against veBank is meaningless if the purpose of the rewards are to attract capital.