Risk Free Borrowing with vCVGX Explained

Once the price gets closer to the floor of the bonding curve, users can take advantage of it and decrease their risk level by borrowing against their vCVGX.

The fact that you can borrow 1 ETH for your 1 vCVGX also brings another aspect to ConvergeX, since when the bonding curve sits closer to the floor price, it becomes more & more risk free to buy CVGX with your ETH, lock it as vCVGX, and borrow ETH against it - having voting power in the process.

To give an example, a user entering ConvergeX when the bonding curve is at its floor price (1 ETH/CVGX) would have the chance to:

1-) Deposit 1 ETH to the bonding curve

2-) Receive 0.998 CVGX according to the x * y = k calculation

3-) Lock that 0.998 CVGX into vCVGX

4-) Use their vCVGX as collateral and receive 0.998 ETH

5-) Therefore receiving a voting power of 0.998 vCVGX, and potentially losing out 0.002 ETH at max in the worst case scenario

In theory, this should mean that a user would take advantage of the bonding curve price falling, and first people who enter the ecosystem have the least amount of risk.