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JaMoS9812

01/15/22 1:51 AM

#31147 RE: WiseYoda #31145

When you pair SGB with CAND, or any other pairings, you are trading those in for liquidity pool tokens representing an approximation of the value of those assets. Depending on fluctuations, you may get more or less of each asset you put in when you cash out. Since one is CAND in this case, it should theoretically stay at $1 so in SGB/CAND pairing, the fluctuation would happen in the SGB side. If you are buying CAND with SGB to then pair with SGB as liquidity pool tokens, if SGB runs up you would miss out on its appreciation. What people are doing is taking out a loan in CAND using WSGB as collateral so they don't miss out. You run the risk of being liquidated in that case though. I think the minimum for a loan is $1800 backed by your WSGB collateral.