I have a short strategic question - may be you could help clarify.
Using ETH as collateral and borrow against ist will give me alETH to work with.
as ETH is a volatile asset (very different from DAI) I suppose to clear the the borrowed alETH amount I will have to repay an exact alETH amount, rather than a USD amount at the time of borrowing.
An example. I put 10 ETH as Collateral in the vault with an ETH price of 3000 USD at the time. I take out 5 alETH at the same price. ETH price goes to 6000 USD. My "debt" will now not be worth 15k (5 alTH * 3000) ... but rather 30k (5alETH * 6000).
Is that logic correct? if so. How do you handle that from an investment strategy pov?
Thanks!