Why does Kraken have borrowing volume hardcaps (2500 Ethereum for example) on top of the 500k borrowing limit? Wouldn’t the 500k be enough on its own? It feels artificial and unecessary!
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1. we have a limited quantity of ETH to go around, 2. we don't want the pool to be used up by one person, 3. we don't want the pool to be used up by one position. It is not necessary but we do it to mitigate our risk.
