The Crypto Raiders DeFi ecosystem is growing once again!
We’re excited to announce a new partnership with Market.xyz to offer greater liquidity for holders of RAIDER and AURUM.
Starting today, you can deposit your RAIDER and AURUM, as well as ETH, MATIC, and USDC, to earn interest and borrow against your collateral!
If you’re familiar with lending protocols like AAVE, this works very similarly.
As you deposit crypto assets, your Supply Balance increases. The higher your supply of collateral, the more you can borrow against it.
Different assets have different maximum Loan-to-Value ratios. USDC, being the most stable, allows you to borrow up to 70% of the deposited value. Raider and Aurum have lower LTVs of 60% and 50% respectively.
Any asset you supply will earn interest based on the demand from other people to borrow that asset. For example, if you supply some USDC, you’ll earn a higher APR on it the more other people borrow USDC.
At any time you can withdraw your supplied assets along with the interest earned, so long as you’ve paid off any debt they’re acting as collateral for.
Now the important part: If you borrow too much, and the price of RAIDER or other assets you’re supplying go down, or the price of what you borrowed shoots up relative to what you supplied, you could be margin called and lose your supplied assets.
For example, say you supply $10,000 of RAIDER at $4. Then you borrow $5,000 of USDC. If RAIDER falls to $3, you will only have $7,500 of RAIDER to back up your $5,000 of USDC.
Since the max LTV for RAIDER is 60%, the most you could now borrow is $4,500. So Market will take $500 (plus a fee percentage) of your supplied RAIDER to pay off your debt. This will happen nearly instantly and there’s no way you can undo it once it’s done, so please be careful.
If you borrow an aggressive amount against your RAIDER and AURUM, and the price of them drops, you will lose some of the amount you supplied. If you’re not comfortable with the risks of using leverage like this, don’t borrow anything against your supplied assets. We don’t want anyone to take on a bunch of risk and lose their RAIDER or AURUM!
Aside from that, you now have a tool to get access to liquidity for your RAIDER and AURUM without having to sell them to other tokens.
Be sure to check out our pool on Market.xyz and let us know in the Discord if you have any questions!
Disclaimer: Market.xyz is not associated with CR Technologies, Inc. or their subsidiaries. Use this protocol at your own risk.