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/biz/ - Business & Finance


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23932563 No.23932563 [Reply] [Original]

Would using my linkies as collateral for a loan from AAVE be retarded or based? Is anyone here doing this?

>> No.23932627

Dont use your whole stack, and keep your debt to collateral ratio under 25% and you should be fine. Defi is a powerful tool when used properly and only cucks are afraid to use debt as a wealth building tool.

>> No.23932652

N

>> No.23932653

>>23932627
is it advisable to stick to borrowing stablecoins or should I directly borrow the thing I want to buy?

>> No.23932661
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23932661

>>23932563
nice hat sir

>> No.23932681
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23932681

highly based my good sir

>> No.23932698

>>23932563
Many link whales me included are doing it. Keep your health factor above 3 and you should be fine

>> No.23932708

>>23932653
Borrowing the thing you want to buy is retarded if you expect the price to go up. You would have to pay back the same amount of X shitcoin regardless of price and pay several transaction fees to keep none of the gains. Borrow directly to short an asset, or borrow stablecoins and then buy the asset to go long.

>> No.23932711

>>23932653
no dont borrow the coin you want to buy
because then if the value of the coin goes up you still have to pay back the coin you borrowed
>borrow usdc/usdt
>buy coin you want to buy
>coin value go up
>sell some coin to pay back loan
>keep extra coin as profit
if you buy 1k linkies now with a loan for 12k for example
then when link hits 40-80 on the next run up you can sell a couple hundred link to pay back the loan and WALLAH you keep all those extra link

>> No.23932716

>>23932653
Youre too stupid for it, forget it

>> No.23932722
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23932722

>>23932711
>because then if the value of the coin goes up you still have to pay back the coin you borrowed

...

...

I'm not retarded I swear

>> No.23932734
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23932734

>>23932716
leave me alone

>> No.23932735

>>23932698
>>23932627
dont listen to these cucks health level 3 is wayy to high
keep your liquidation price somewhere below 7 and you will be A ok

>> No.23932810

>>23932735
Youre probably right but i dont want to risk it

>> No.23932835 [DELETED] 

>>23932735
>Retarded faggot can't do math
At 25% debt to collateral ratio the price of link would have to crash by more than 60% to get liquidated, meaning liquidation price is below $5 at current price of link ($12.46)

>> No.23932871

>>23932735
I keep mine around 2 but OP doesn't need to be aggressive when he doesn't even understand the basic strategy of how this works.