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28792277 No.28792277 [Reply] [Original]

>stake link on aave to borrow usdt
>use usdt to buy link
>stake new link on aave again to borrow more usdt
>use usdt to buy link
>stake new link on aave again to borrow more usdt
>use usdt to buy link
>repeat 2-3 more time until 80 ratio do not let you borrow more
>enjoy
Am I retarded ?

>> No.28792711

this is the way. unironically went from 5k during march to close to 1m now doing this method
Just dont max it out because then if link dumps hard it will sell off some of your link to repay your loan.
Keep your health factor above 3 and you should be good (would require roughly a 66% drop in price to take you out)

>> No.28793418

>>28792711
noice
although it seems too easy desu, I'll try with 10% of my stack, if it works then clown world.

>> No.28793475

>>28792277
Are you doing this on binance?

>> No.28793694

>>28792277
I have no idea how to use AAVE.
What's the dummy's guide to this process?

>> No.28794262

>>28793475
aave platform

>>28793694
connect your wallet to the site, then deposit and/or borrow directly

>> No.28794386

>>28794262
I only see an option for staking AAVE itself?
Do you mean stake LINK somehow, and then use the gains to borrow USDT to buy more link?

>> No.28794600

>>28794386
I mean to say using link as collateral, not staking sry.

>> No.28795000

>>28794600
Ohhh so like I go to borrow USDT and then put up my LINK as collateral. Then use the USDT to buy more LINK?
This is interesting but anything involving borrowing kinda spooks me as a poorfag. How risky is it?

>> No.28795097

>>28792277
Yes
A moderate pullback and you have 0 link

>> No.28795397

>>28795000
you can get liquidated if link dump hard so keep an health factor high like >>28792711 said
the only reason I would do this on aave is,
1- decentralized so you just move on if you get rekt, no loanshark after you
2- it uses chainlink's price feed, so its safer than other lending platforms
but yeah its spooky af, which is way I'm testing it with only a small portion of my stack

>> No.28795732

so how can this turn out to be a losing scenario?

>> No.28796121
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28796121

it just came to me, I am indeed a retard, if I borrow on borrow on borrow I can't keep an high health ratio.
however just looping one time seems to be the smart thing to do, ie put as collateral what you've borrowed the first time and that's it.

>> No.28796206

This is how billionaires are made

>> No.28796302

Your returns on staking will be worse than the interest rate on the loan. You’re essentially trading on margin here.