Borrow With No Interest/No Liquidation Risk
You can use your vCVGX as collateral, and borrow 1 ETH for each vCVGX that you have.
vCVGX as Collateral
As we have seen in the previous page, the bonding curve guarantees that 1 circulating CVGX is always backed by at least 1 ETH.
This would be enabling an innovative borrowing mechanism for vCVGX as collateral. Since the value of 1 CVGX is always greater than or equal to 1 ETH, vCVGX holders can borrow up to 1 ETH for each vCVGX they have staked. This borrowing mechanism incurs no risk of liquidation, as the value of the borrowed ETH is always fully backed by CVGX tokens.
The lack of liquidation risk and interest offers a more attractive and less stressful borrowing experience for users compared to traditional DeFi lending platforms. Furthermore, the system's design eliminates the possibility of bad debt, as the value of CVGX tokens remains equal to or greater than the borrowed ETH at all times, maintaining protocol stability.
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