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interlay.github.io's Issues

Document Lending and Borrowing

Rough points to cover

  • How to lend and withdraw
  • How to borrow and repay
  • How to liquidate an undercollateralized loan
  • Guide to interest rate and subsidy rewards

Potential attack discussion

Note: I just looked into the protocol very briefly and would like to understand how the protocol would deal with the following attack.

As the value/peg of the protocol seemingly relies directly on cryptoeconomic security assumptions, even more than renBTC, how would the protocol deal with the a black-thursday-like event affecting only the DOT price (or any collateral) but not BTC?
If the DOT price plunges by let's say 30%, which would lead to many vaults being undercollateralized, the vault owners could simply keep the BTC or use it to buy up DOT before prices move up again.

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