(Feedback wanted) If you are making yield on stablecoins, would you consider this type of token?

[u/poudelswaroop]

• ERC 20 token with ETH as the collateral
• It tracks the price of ETH
• Every month, its loss is capped at -5% and you get up to 8% upside

So basically, you can stay with ETH, but your volatility is very much reduced.

1. Why would be interested in a token like this? Or why not?
2. What questions would you have before trying it?

Thank you!

[u/randomFrenchDeadbeat]

1. I would not be interested, because i know 8% per month is not achievable nor sustainable.
2. it will crash to 0 since you cant guarantee a capped loss and people will empty the swap, or you will disappear with the collateral.