UMA 🥚 (@UMAprotocol): 5. Repay bad debt. ⚖️
Estimated coin impact
Scores are not price-change percentages. High impact means a score of +70 or more, or -70 or less.
Impact unavailable
5. Repay bad debt. ⚖️ Lending protocols are designed to avoid bad debt. However, in the rare occurrence it happens, large amounts of OEV are created. Captured OEV can be used to offset lender losses, reducing the tail risks they face by supplying to the lending market.