Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.
Not missing anything. The system works on a principle where you have to deposit more than you can borrow.
I've depposited some DAI and am getting daily interest. Atm due to market, interest is around 20%/y, but it's usually 8%
Thanks.
Which means that to borrow I have to over collaterize, and to save I just need to put my DAI in it and get the current 20+% ?
Yea, exactly.
I'm not sure its 20% anymore as it fluctuates, but that's the idea of it