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20454274 No.20454274 [Reply] [Original]

Brainlet here. Can someone redpill me on some decent defi platforms? I'm looking to deposit my link somewhere. Anyone have any recommendations? Been looking at AAVE.

>> No.20454294

AAVE is good, what do you want to do?

>> No.20454379
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20454379

>>20454294
Just deposit somewhere earn some interest. I might also borrow some change and mess around with it for a bit, want to get a feel for the defi space.

I'm looking at link on AAVE right now, does this mean you only receive 0.03% on average every year on your link? pic related.

>> No.20454423

>>20454379
yeah that's why I asked

>> No.20454442

>>20454423
damn that seems pretty shit

>> No.20454516

>>20454274
I found this but it kind of looks like a scam with how good the returns are.

https://nexo.io/earn-crypto

>> No.20454551

>>20454274

The interest is so low because nobody is borrowing LINK.

Deposit LINK
Borrow X coin
Change for more LINK
??????

Profit

>> No.20454572

>>20454442
it's very safe to borrow against though, nobody wants to borrow LINK because everybody knows it's going to the moon. So they aren't incentivizing providing it.

>> No.20454598

>>20454551
>>20454572
So lets say you borrow 200 LINK, you'll have to pay back that 200 LINK plus interest? So like 210 LINK?

>> No.20454621

>>20454598
sure, I can't think of a reason to borrow link though

>> No.20454656

>>20454621
ok neither can I, I just wanted to confirm that's how it works. Could you "short" a coin by depositing it, borrowing it, selling it on an exchange, buying back at a lower price, and then paying off the loan?

>> No.20454699

>>20454656
dude I am not gonna think this hard

>> No.20455300
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20455300

>>20454699
it's ok. thank you for your time anon

>> No.20455367

>>20455300
I feel like you'd be liquidated before completing this sequence and there must be an easier way to short it. There are so many moving parts in that example I just can't even make heads or tails of it. It's kind of annoying me, I'll hang out with you if you wanna run through a scenario, I'm bored.

>> No.20455445

>>20454656
Yes you could. The reason people are saying not to is that the debt is denominated in LINK. If you borrow LINK you have to pay back LINK. Since people are expecting it to moon, the debt would be much higher in the future and that include interest (also in LINK). Shorting would be borrow -> sell -> pay back later (if possible).

>> No.20455715

>>20455367
Ight I'll try to break it down, but basically >>20455445 what this anon said

1. Deposit 100 LINK
2. Borrow 25 LINK
3. Send 25 LINK to exchange
4. Sell 25 LINK
5. Price drops
6. Buy back 28 LINK
7. Pay back loan of 25 LINK + 0.5 LINK interest
8. 28 - 25.5 = 2.5
9. Keep the remaining 2.5 LINK

>> No.20455764

>>20455715
bzx will reintroduce margin trading in august, you can short link there in one tx