COTI Treasury Is Actually Good Fun
Health factor sits at 1.55 now down from 2.0 but still along way to go before there is risk and action required. Level 4 you start at 1.33 and Level 3 1.66 so those investors are at serious risk. Level 4 would have been liquidated unless they added stake or withdraw paying penalty fees.
This is the latest from a few minutes ago and things are looking great as the APR has increased yet again meaning more liquidations. I suspect Level 3 Staking is now being liquidated so paying attention is key now.
The COTI Treasury is actually loads of fun as along as you understand the mechanics that make it work. I am enjoying the volatility if the crypto markets at the moment as they are increasing my APR due to liquidations. The greed factor has caught so many out and shockingly they don't understand what they are doing. This is different to DeFi which I struggle with things like permanent loss and my brain gets this. I love working with figures and this is more of a game to me except their is financial implications involved.
COTI has been down a slow as $0.1637 today which triggered many to lose their investments. Last night the APR was sitting at 23.24% for my level 2 multiplier level so a good result so far. The health factor is fine as I have another 6c before I am concerned and have to take action.
The COTI Treasury gives you 1 hours grace to rectify the liquidation if your stake turns red. That is more than fair as it is not lost as there are a few options to take. Withdraw your stake from the risk losing the accumulated rewards plus paying a penalty fee of 2%. That I feel is too small a penalty to pay as what is 2% when you are hunting 46%. The other option is to stake more reducing the liquidation price and increasing your health.
I have kept 1000 COTI to top up the Level 2 stake and to take advantage. If BTC does drop into the $20K - $25K region this should be good fun as how low can the price drop.
Makes no sense why everyone is concerned about price if they have no thought of selling as this is the accumulation time. I am more concerned about doubling my stake as quick as possible and will be targeting the riskier levels once the price volatility has calmed down.
The COTI Treasury requires you to have liquid COTI if you are going to chance your arm at the higher riskier levels. That is the plan to accumulate a mini war chest adding each time the price drops. This is the safety blanket as at some point the market will turn being invested at the lowest possible point. Something tells me we have a way to go yet and the possibilities of buying at much lower prices is pretty cool.
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What do you mean by liquidation? Do you lose your entire stack that you have in there? Or you just lose any gains that you might have made on it?
Just curious. Trying to figure this out ahead of time so I am ready.
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Yes you can lose everything if you aren't careful. level 1 is no risk and why it is only 12% APR. The levels 2-4 carry risk and that is great as thy feed the APR as well when they are liquidated. Level 2 is the furthest I have gambled and still have to be careful even though it means the rice must drop another 5 or 6 cents for that to happen. If you add stake you reduce the liquidation price if that price is lower than when you first staked so you can be ahead of the game. You can bail as well losing the gains plus a penalty of only 2% on the stake.
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Interesting. 12% is still a dang good rate!
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Yes it is and why I am fishing for double that trying to eliminate any risk or lower the risk as 36% or 48% is not worth it. Already tonight the treasury has had 27 million COTI added meaning there was 27 million at risk. Many got liquidated so these are harsh lessons for some.
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Yikes, that sounds scary! I guess it would make more sense to just put more in at the lower level.
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The good thing about COTI, it doesn't require expensive mining, it saves energy and eliminates reliance on middlemen
COTI system is good for protecting users from scams, as well as providing easy tools for dealing
Pretty ingenious system in my opinion, you take as much risk as you want. And you can reduce your risk when you come into a problem area, by adding to your stack. I love it!
I really enjoy this as it is fairly simple to understand the metrics and what needs to happen. Was hoping for it to drop some more as the more you add at a lower price the safer you are as it adjusts the liquidation price. I missed the last drop at 14.68c but believe we will see lower so hoping to add tonight or tomorrow reducing my price to around 6 or 7c which should be safe hopefully.
$27 million staked in last few hours means stake was at risk and they had no choice but to throw more funds lol.
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