/biz/ - Business & Finance

>>19884287
bump

>>19884287
Yes there is a demo website, it’s called YouTube.

i've used my lend as collateral on aave to borrow usdt to buy more lend to buy more lend to buy more lend to buy more lend to buy more lend. you only need to do 2 clicks to borrow. 1 click to deposit collateral. 1 click to borrow usdt.

>>19885240
>https://defirate.com/aave/
how can i borrow without collateral? If i got to a bank i need to give them anything wtf this makes no sense. You give them x money and the lend you x in return? wtf

>>19884287
Yes, what part is confusing you?
Deposit collateral (10eth for example worth 250 each)
Now you have 2500 in collateral
For eth you can take 80% of collateral value in loan so this gives you up to 2000 in loan access
Now you have 2000 usdc
If your loan value goes above 90% of your collateral value part of your collateral goes up for liquidation to pay off some of the loan value
The interest is automatically added onto the loan as you go

>>19885335
oh so whatever gets liquidated goes to principal of the loan or they take it as a fee?

>>19885292
you don't give them money, you lock your crypto as insurance, and the amount stays tied to your wallet through a smart contract (while also gaining yield on it). it works as a guarantee that you will pay back the loan. you can fully unlock it by paying back what you borrowed.

I've used it a lot. It's great for when you want to invest in some low mc coin but don't want to sell your main holdinds

>>19885655
Oh thanks that actually sounds pretty good

>>19885240
>>19885335
Let's say I have 50k in eth and I want 100k. I know the borrow limit is 50%, so I'd need to borrow twice.
Can I use the collateral+borrow to exponentially borrow? Will the collateral be locked on their exchange or can I pull it out?

What's the difference between Interest and 30D Avg Rate? which coin should I borrow with if I want to pay back after 30 days without owe-ing 50% extra or even 100% extra back?

do we pay back the amount we borrowed lets say i have 10k lend

i deposit 10k and borrow 4k (40% loan to value)
now i have 14000

do i have to pay back in dollar amount what i borrowed or in the amount of aave i borrowed? how do i profit off of this is my borrowing scheme retarded or am i missing the big picture

>>19886469
you pay back the loan using the crypto you borrowed

>>19886469
Can someone answer if you can take out your collateral so you can trade with 14k instead of just a 4k?

>>19886469
depost lend
take out usdt loan
when you want to pay back loan you need to use usdt. you can either use usdt you have or withdraw part of the lend you deposited and sell that to get some usdt

>>19886564
>Can someone answer if you can take out your collateral so you can trade with 14k instead of just a 4k?
you can take out 10k.. you must leave 4k in

you must leave 4k in.. you can withdraw the other 6k and trade with it. you also have the 4k loan you can trade with

>>19886469
you need to pay back loan in same crypto as the loan

i did lend > usdt > lend > usdt > lend > usdt until i was a lend whale

>>19886564
Have you thought about that? If you remove collateral then your loan's health decreases and you're closer and more likely to get liquidated.

>>19886469
You can withdraw your collateral at any time, as long as you leave enough to cover for your loan, so you'll never be able to trade with 14k, in your example, only 10k, which would make the borrowing useless.
What you pay is what you borrow, for example if you borrow 100 link, you have to pay back 100 link (plus interest).

I'll give you an example of how I profited from it recently:
I wanted to get in on the COMP hype, but didn't want to sell any of my holdings, so I deposited 1000 link to borrow 6 eth (low risk) and used it to buy COMP when it was under $100. When COMP got to around $300 I sold it all for about 18 eth, paid back the loan, withdrew my link and got about 12 eth as profit (which I immediately converted to link).

>>19887058
Is there a deadline when you have to pay back the loan?

>>19887189
no, you can pay the loan any time you want. as long as you have enough collateral deposited I'm pretty sure you can keep the loan forever, however it will keep building up interest, so the sooner you pay back the better.

>>19886726
What if I try to borrow multiple times using my entire stack? will the interest rate be too big to maintain my collateral healthy?

>>19886828
>>19885240
With each iteration you have less money, around 20% less each time if that post is correct.

This means you will have less and less capital each time until you with 0 but much more before that happens you won't have enough money to pay back what is locked to unlock what is locked to unlock whatever is locked etc...

An I missing something? How do you take at least your original collateral back if you spent all you had in that loop???

The only way is the underlying asset pulling a 2x or some weird shit like that?

This is truly mind bending to me implying you guys aren't trolling

So on a safe side, one can deposit LEND to barrow BUSD and deposit BUSD to earn a higher interest to protfit?

>>19886828
i'm brainlet too. so you use lend to buy usd to buy lend ... so how much lend/udt are you up?

>>19885453
Some goes towards the loan and some is given as a bonus to the person providing liquidity for your coin i.e. if they "buy" your eth collateral for usdc then they will get it at a small discount
>>19886017
The collateral is not in any sort of exchange it is locked in a smart contract. Aave is just a protocol. Think of the site as a GUI to the protocol.
When you take a loan you get to choose between stable and variable rate just choose whichever is lower (always seems to be variable for me)
Interest is the current rate 30d avvg rate is the average of the rate over the past 30 days
I'd say you should expect to have about 6-7% interest on a stable coin loan. So after one month you would be paying around .75% interest on your initial loan. You will not be paying anywhere near double. If you take 1000$ loan it would most likely be under 10$ interest over a month
The rates are very competitive
>>19886469
You take a loan to borrow stablecoin such as usdc then go use the usdc to buy aave. Then if aave goes up you sell aave back to usdc, pay off the loan, and keep the difference as profit .if you borrow aave directly then you would have to pay back aave lendtoken so you wouldn't make profit if the value of aave went up
>>19887189
No deadlines

I am only spoon-feeding because I have accumulated my make it stack of 1mill lend tokens. Not selling any until coinbase listing

>>19888430
No because if you borrow BUSD you will be paying interest on the loan which would cancel out your earnings from supplying BUSD for other people. You would basically be loaning to yourself. you can earn profits while staying pretty safe by taking small loans to buy dips. Right now I have 100k in loan value and I'm only at risk of liquidation if eth goes under 80$
But if it started dropping that much I would just pay some loan off to stay safe

>>19888619
Thanks a lot! LEND is a very versatile token.

bump for interest

>>19888619
>Not selling any until coinbase listing
same

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