[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 8 KB, 400x400, external-content.duckduckgo.com.jpg [View same] [iqdb] [saucenao] [google]
28826991 No.28826991 [Reply] [Original]

>Withdraw life savings
>Deposit on AAVE for 15% APY on a stablecoin like DAI that can't be rugged by a company
>Keep it on AAVE as long as APY > Inflation
>Good returns

What can go wrong? Is AAVE ruggable?

>> No.28827106

What do you think everyone is doing

>> No.28827116

>>28826991
Nope, top 10 coin.

>> No.28827160

>>28826991
Aside from gas fees, nothing. Welcome.

>> No.28827185

>>28826991
>exploit
>life savings gone

>> No.28827235

>>28826991
Nothing is unruggable. E.g Some people prefer mixing their funds in CeFi like Binance since they have insurance fund.

>> No.28827274

>>28826991
yeah, returns will fucking drop fast as fuck when market crashes. and if some popular crypto melts ton of lenders wont bring their shit back. also could get hacked. its by no means risk free but its a pretty good deal while its available

>> No.28827282

>>28826991
gas is the main problem if you are using small amounts, and the opportunity cost of not buying non stablecoins yourself, but it is very low risk
>>28827185
stakers are insuring the protocol

>> No.28827401

>>28827235
anyone who is trusting their capital on binance over aave is a complete brainlet KEK

>> No.28827488
File: 64 KB, 645x729, 1213528823084.jpg [View same] [iqdb] [saucenao] [google]
28827488

wait are you supposed to be doing something with AAVE tokens?

I have a little over 10 of them, just letting them sit in my coinbase pro portfolio

should I be doing something more with them?

>> No.28827587

One other thing... How is interest paid, daily? Do they give you aDAI or something to represent your share of the DAI pool? Is it possible to get scammed somehow, like if everyone withdraws their DAI before you do or some shit?

>> No.28827891

>every single person can just go all-in on crypto with their life savings and get 20% return per year
Why do you think there are no sellers and the line went straight up, anon? It's a new paradigm

>> No.28828662

AAVE's returns are unsustainable. The Dunning-Kruger effect is strong with this one.

>> No.28828974

whats a suicide and make it stack of aave my niggies?

>> No.28829074
File: 111 KB, 1136x956, insane good luck.jpg [View same] [iqdb] [saucenao] [google]
28829074

>>28827587
interest is paid continuously.

Yes you technically hold aDAI which exchanges for DAI at a higher rate when you withdraw from the protocol.

scammed? No I don't think so. If everyone pulls dai out apy should increases, driving market to want to put in.

If for some ungodly reason everyone REALLY pulled the fuck out I think some protocol measures go into place? idk read the fucking docs lol what kind of question is this even

>> No.28829358

>>28828974
SOMEONE TELL ME

>> No.28829475

>>28827235
back to plebbit you go
imagine trusting cz

>> No.28829668

>>28828974
>suicide stack
1 AAVE
>make it stack
2 AAVE

$800k EOY.

>> No.28829872

The real play is to take out stable coin loans against your assets and letting inflation obliterate your debt value. With aave you don't even need to make interest payments, just be mindful of your health factor. If you take a long term approach and you manage a very conservative loan to collateral ratio, you can just rinse and repeat for years and years. Bonus you don't even pay taxes because you're living off loans

>> No.28830839

>>28826991
Celsius Network is giving $70 BTC for free if you deposit $200 for 30 days

1094472e86 referral for $30, then go to Profile, Promo Codes and enter WEB40 for $40

Deposit $200 and you'll see the rewards locked for 30 days, withdrawals are free

12.51% APY on stablecoins without retarded ETH fees and with free withdrawals

>> No.28831644

>>28829872
fuck i wish i had an iq that could understand this. what if your assets value drops like 2017

>> No.28831940

>>28831644
they told you everything you need to know. read it again and then go research it. not trying to be a dick just trying to help guide you

>> No.28832261

>>28826991
Add insurance from nexus mutual and you got the future

>> No.28832346

>>28831644
You get liquidated, price drops, somebody else gets liquidated, price drops, and this repeats until the entire leveraged market gets liquidated.

What he's talking about is what everybody has been doing for the past year and when the price drops, it will tank much lower than you think.

>> No.28832397

>>28831940
She just said she didn’t understand it WHY ARE YOU SO FUCKING RETARD

>> No.28832546

>>28832397
>read it again and then go research it.
No. it is you who is the retard.

>> No.28832663

>>28827282
How much gas does it take to deposit on AAVE, typically? How much would I have to deposit for it to be worth it?

>> No.28832685

>>28832397
>she
umm excuse me sweaty i will never be a woman
>>28831940
where the fuck else other than biz do i go to read about crypto i dont even know where to start

>> No.28832681

>>28828974
>>28829358
I WANNA KNOW TOO
t. 50 stacklet

>> No.28832729

>>28827488
you should at least put them in a real wallet desu why the fuck are you leaving them on goybase

>> No.28832802

>>28827488
OP is talking about the protocol not the coin

>> No.28833130

>>28832346
>The real play is to take out stable coin loans against your assets and letting inflation obliterate your debt value. With aave you don't even need to make interest payments, just be mindful of your health factor. If you take a long term approach and you manage a very conservative loan to collateral ratio, you can just rinse and repeat for years and years. Bonus you don't even pay taxes because you're living off loans
>>28831940
So to summarize the strategy:
1. Use BTC/ETH as collateral, take out a stablecoin loan with AAVE
2. Find some stable yield farming to generate gains with the loan
3. IF BTC/ETH moons vs. stablecoin price, you're yield farming (with free money) AND having BTC/ETH appreciate in $

>> No.28833166

>>28832729
i dunno, are they doing something bad to them?

>> No.28833235

>>28833130
Everybody is doing this. Which means everybody is buying with both hands, using all their crypto to collateralize loans, and nobody is selling.

If the price drops and forced liquidations occur, there will be a cascade effect of selling. This is much riskier than you think it is. You're not going to get rich overnight. The housing bubble of 05-06 was the exact same - "just withdraw your equity!".

>> No.28833316

>>28833130
yeah but what about the variable APR for the borrower? They can spike like crazy, doesn't that cut into profits quickly?

>> No.28833453

I was just thinking this, convert the cash I have minus a couple thousand. Seems better than an investment fund..

>> No.28834050

>>28826991
Well yeah, that's what you do once you make it. You don't "cash out" your stack, you use your crypto on one of these projects to get a nice APY% and live off the proceeds.