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29449771 No.29449771 [Reply] [Original]

I have a question about Aave. if I deposit link and borrow link against my link, I can never get liquidated right? my health factor will remain static?

>> No.29449867

>>29449771
yes, but why the fuck would u borrow link?

>> No.29450154

>>29449867
to short it without risking my stack, if I can borrow with zero risk and low apr I would rather risk the borrowed link than my real link. this way I can unlock the shorting power of my stack without risking the principal

>> No.29450191

>>29450154
>short goes against you
>now you have to buy back link to pay back your link loan in order to free your link collateral
literal retard

>> No.29450254

>>29450191
since my health factor is static that doesn’t matter, I wouldn’t need to be right 100% of the time, just right enough to steadily increase my link over time using the borrowed capital

>> No.29450258

Link holders are seriously some of the dumbest faggots on this board

>> No.29450366
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29450366

>borrowing an asset you already have
what is your end goal of this?
just sell the link in your wallet instead of borrowing from aave

>> No.29450459

>>29450366
actually makes sense when there are rewards, but yeah that's over on aave

>> No.29450488

>>29449771
Kleros it sir.

>> No.29450533

>>29450366
it defers risk to do it like this, why risk potentially permanently lowering my principal (and therefore my buying power) when I can generate 50% of my stack for free and play with that instead? if I fuck up I won’t truly be out anything because I can’t be liquidated

>> No.29450666

>>29450533
it's not buying power if you can't use it, which would be the case if your idea went wrong.
but it could have some tax benefits, I guess.

>> No.29450826

>>29450666
well of course if I absolutely had to sell I’d need to eat any losses and liquidate enough to liberate the locked link, but since I intend to hold this seems like a way to at least try to play the shorting game without directly threatening my holdings. I’d rather carry very low apr debt than a realized hole in my existing link stack

>> No.29451002

>>29450154
The absolute state.

>> No.29451231
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29451231

>>29450154
dumbest thing I ever heard
why don't you simply 1x short inn futures with LINK collateral (not fiat collateral)
that way you earn funding in LINK, you cannot get liquidated, and you don't need to pay any borrow interest

>> No.29451407

>>29451231
>why don't you simply 1x short inn futures
I don’t know what that is or how to do that, but that sounds good. I just want to find a way to collaterize my link for a relatively low risk return