I have 10 Ethereum and I read one can take a loan against it and use it as collateral using the MakerDAO service to get DAI tokens. I've never done this and want to make sure I'm doing it correctly.
My ETH is currently worth pretty much $1000 now. I want to take a loan out for $500.
- What is my liquidation price where I lose all my ETH?
- What is the interest rate on borrowing?
- Does my interest rate change after borrowing for 1 year?
- Do I have to make monthly payments?
- What else does one need to know before doing this? Any gotchas I should be aware of?