You need $500 usdT/Dai etc but dont want to sell your zzz.
- you give $1000 of zzz for collateral in exchange for $500 stable coin.
- You have 6 months to pay back as you wish or loan amount taken from collateral.
- Interest is charged at 8% APR.
- However, collateral is staked in new pool which earns nap tokens. 50% of nap tokens are used to offset interest rate for user. Other 50% earned gets put into dev fund.
- if collateral reaches 90% loan gets liquidated.
Obviously the amounts/interest rate/collateral etc needs to be tailored but you get the jist.
Collateral may even need to be 3x to purchase stable coin plus volatility of current asset.