/biz/ - Business & Finance

Yes

go back in time 3 years and buy $300 of ETH per month

>>17411275
Use your existing Chainlink/Crypto as collateral on any DeFi platform to open a leveraged Long Chainlink position

>>17411341

i only have ~300 linkies though. also i dont know how to do what you just said.

>>17411520
You take a loan out against your stack (with your stack as collateral) to invest in a bigger stack

>>17411548
If you don't repay the debt, you lose your stack

>>17411520
Learn.
Or don't.
You've received the answer to your question.

>>17411341
What's the most legit DeFi platform?
They all look like a fucking scam, I don't know what's the less worse

>>17411341
>>17411548
Wouldn't you just be avle to get a defi loan, and loan that money out and get profits?

>>17411626
Able*

>>17411578
Not exactly.
As long as your Collateralization Ratio remains above liquidation levels, you do not "lose your stack".
Unless there is a maximum trade duration (~30 days, in most cases), as long as you're position is sufficiently collateralized, you don't have to "repay" unless you want to close out the entirety of the position.

>>17411601
Are you a burger?
If so, your options are limited to nuo.network
If not so, your options open significantly.

>>17411675
But let's that i have $10k and borrow $20k from them and lock the $20k for a mouth and get the staking reward and Sell that, wouldn't that be a profit?

>>17411626
Yes you can.
But I'll warn you from personal experience:
when you loan out highly volatile assets like Chainlink, you could incur losses as the loan provider in the event of LINK moving swiftly in the opposite direction of a large borrowers position.

>>17411698
EUrofag here

>>17411720
see
>>17411736

your logic is sound.
but a highly volatile asset like LINK wreaks havoc on loans and positions when it's used as the underlying collateral

>>17411747
can only speak from experience and vouch for nuo, though it's UI can be clunky at times.

Binance Margin is probably your best bet outside of the US, as you've probably familiarized yourself with its platform if you've been in the scene for any amount of time.

>>17411584

reading up on nuo now (burger)

is this method generally a good idea though for HODL? or at least NOT swinging? it seems like link will be hitting $10 EOY

>>17411873
>this method
what method?

>good idea though for HODL? or at least NOT swinging?
reword your question, it makes no sense.

>>17411913

is taking out a loan a good idea if i plan on holding at least through the year?

>>17411969
how does your "plan on holding for at least a year" have any consequence on whether "taking out a loan is a good idea"?
if you open a long position on loaned money and the asset value plummets, what does it matter that you planned on holding the asset through the year?
study the borrowing/loaning/liquidation formulas before moving forward.
kraken has excellent education materials on just that.

>>17412100

okay anon, thanks for the help

>>17411736
>>17411755

If i would do this i would do it with the crypto dot com token 14% a year

>>17412100
different defi retard here.

if you sent them 1000 stinkies and it's worth ~4000, and then only borrowed like $500 to fuck around trading, would that be "safe"?

wouldn't link need to go to like $2 or something to get liquidated (because of that borrow ratio?)

>>17411341
>open a leveraged Long Chainlink position
LINK has done +-50% several times the past year. Opening a 2x position in June would've gotten you liquidated by the end of August.

>>17412178
anytime fren

>>17412260
that's for loaned stablecoins, not LINK

>>17412316
yes.
very good risk management mindset you have there.

>>17412377
yes...and?
opening the same 2:1 in january would've gotten you 2x wealthier by the end of today.
the whole point of margin trading is to (attempt to) leverage the opportunity of that exact volatility in your favor.
for better or for worse.

>>17412466
My point is that assets like LINK are volatile enough without leveraging them, to the point where it becomes too much of a gamble. I am definitely long on LINK, but leverage is too greedy and will inevitably bite people in the ass. It's zero-sum, after all.

>>17412498
ok boomer

>>17412466
thanks for the reply

another question: is this another option?
same as above, loan 1k link, borrow $500.
i'm assuming the $500 comes in DAI or tether?

say that CL DOES drop to $2 and you are about to be liquidated. is there a way for you to just repay the 500 tether and still get the 1000 CL back?

Well I did this and bought link at 4.30 and here I am

>>17412593
If you're close to getting liquidated, you need to put more of your own money in to avoid it. In ancient times, your broker would literally call you to advise you to increase your margin to avoid liquidation. Hence, "margin call".

>>17412672
right, wouldn't you just put in $500 (plus whatever interest) and close out the loan?

>>17412793
If you close the position at that point, the losses are yours forever and have become somebody else's gains. Gambling ain't free.

>>17412593
yessir, as long as the platform offer it.
just do your homework
some platforms (nuo.network) do not allow you to add collateral after the trade is opened.

>>17412672
>In ancient times, your broker would literally call you to advise you to increase your margin to avoid liquidation. Hence, "margin call".
that is super fucking interesting, i didn't know that.

>>17412615
what's you liquidation price?

>>17412845
None I used a credit card with 0 percent apy for 15 months.

>>17411275
lol that is worse than my credit card. Just ask for a loan from your CC company, they will give you at a bit lower rate (17-20) withouot extra fees and longer repayment time.

>>17412931
based.
wtf do you have to complain about, you don't think LINK will breach $4.30 in the next 15 months?

>>17412825
in theory:
stake 1000 cl -> borrow 500 tether
trade on 500 tether, make $100, have 600 tether
madness happens and CL drops so far you almost become liquidated
repay the 500 tether from your 600 tether, regain your 1000 cl
.... losses?

>>17411601
Use Aave. You can put link up as collateral for some USDC. Use USDC to buy more LINK. Put new LINK in Aave to improve your collateral ratio.
Wait. Either slowly pay back loan as you feel like it, or just wait for link to 2x. Sell some of those newly purchased linkies to pay back loan. Ez pz

>>17413023
Suppose so, but it still stresses me out. I'm not even full maxed out on it yet either

>>17412931

how do you buy link with a CC?

>>17414070
I used coinmetro

Maybe I should just Max it out and let it ride, then just pump eth and take out an eth loan if nothing moved instead of paying it back

>>17414421

any US alternative?

>>17412377
>LINK has done +-50% several times the past year.
Why do you think so? Its price is manipulated to liquidate people.

>>17415880
Coinmetro works in the us

>>17411275
stfu zult