Hey All,
Finally, I have my Collateral loan, which had locked 58+ $ATOM in smart contract freed up i.e. the loan is now closed. In case you are not aware what Collateral Loan means in crypto then refer to my post here - where I tired to Demystifying - How Collateral works in Crypto? with a real example where I took loan almost 2 Months back in September, 2022. I I had locked 58+ $ATOM to mint $USK; which is the stable coin on KUJIRA blockchain to borrow $207 $USK.
In simple terms collateral helps you to take Loan for your assets. And in crypto world these collateral assets are locked into a smart contract until you pay back your loan. In my case, I had locked 58+ $ATOM to mint $USK; which is the stable coin on KUJIRA blockchain to borrow $207 dollars. Now in order to get back your locked assets you need to pay off your debt and for me I had to pay $207 before I could free up my locked $ATOM.
Position Before Freeing up LOAN...
Following was my LOAN position before closing it. As you can clearly see that 58+ $ATOMs are locked, Loan risk is LOW, LTV which stands for Loan to value (LTV) that determines the amount of crypto one would need as collateral before one could get a loan is also at a lower end i.e. 4.62%. Plus the liquidation Price is $0.81; which means that $ATOM needs to come at this price before my position gets squared off automatically.
SOLD $TROI for $KUJI to Swap for $USK
I had been selling $TORI rewards tokens just to get rid of my collateral loan. I received $TORI tokens via the Airdrop. I had invested in the Orbital Apes project, where I had bought some NFTs and this made me eligible for the Airdrop. The smart move which I did was that I didn't sell $TORI immediately, rather had staked it all to receive the staking rewards.
All these $TORI staking rewards contributed to paying off my collateral debt of $200+ and now finally I have free 58+ $ATOM at my dispersal to spend. Looking at the current price of $ATOM this would be close to $550+ dollars. How good is that you take a loan and then you have the Airdrop tokens work for you to pay off your debts. I am still HOLDing 2K+ $TORI all of them are staked as seen from the above image.
For $ATOM, I still haven't made my mind where to spend it. The price of $ATOM is at its all time low so a bit hesitant to spend immediately. I would rather wait for some time for the prices to bounce back and then take a call. But overall happy how this collateral loan worked out, I did manage to buy some crypto assets at their all time lows. And then the Airdrop money via the $TORI rewards you get the liberty to pay off your collateral loan and close the story and finally walk away with 58+ $ATOM in hand to search for your next crypto investment.
Collateral Loan Paid Off via $TORI Rewards
#collateral #loan #ltv #cryptoloan #Collateralized #howtotakecryptoloan #tori #atom
Image Credits:: kujira.app, app.teritori, keplr
Best Regards
