When link/eth moon no one will want to sell their position.They'll borrow usdc against their stack

Collateral debt platforms like aave/compound/maker will gain huge adoption.

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Borrow USDC and then?

Look on warasou. OP has spoonfed this shit enough.

Fuck that, use your words.

Withdraw usdc, send it to coinbase and cash out.

How are you planning on repaying the loan?

Here's a word

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When link is higher in the future. If I have rent that's 500 dollars, I don't want to sell 125 link. I borrow 500 in usdc and cash out. In a year 75 link could have covered 500 dollars.

When your collateral becomes worth more than what you borrowed you're able to sell part of that to pay off the loan? Continue.

If you need to pay a bill in real life and you think link has more growth potential you don't want to sell your link now. If you have a 500 dollar bill, that would cost 125 link. You think link will go up further and don't want to sell more than you need to. Use your link as collateral to borrow 500 usdc. You didn't have to sell any of your link. In the future if you have cash you can convert it to usdc and pay off the loan. Or you can sell for example 75 link to pay off 500 usdc.(link has now mooned 125 used to be worth 500, now only 75 is worth 500)

Interdesting.

I've heard the tax implications for cashing out this way are better as well since you have the loan which is now a liability. Do you know anything about that to comment on it?

That makes a lot of sense. I'm not worrying about cashing out for a while. I think the IRS only cares about whales making money off volume

you can do that sort of think in AAVE? please tell us more senpai, legitimely interested too

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>AAVE
Hail to Caesar.

What’s the down side?

Is AAVE or their lenders using the collateral in a way that imposes risk on me, such that I have to trust a third party with my collaterals safety?

Like are they reinvesting it elsewhere? Trading it? And who is actually lending me? Is it AAVE or lenders using AAVE?

What is their incentive?

does AAVE work like leverage trading where you can get liquidated if LINK drops below a certain point? seems like just taking out a regular personal loan at a bank is a better option if that's the case.

yeah i just looked it up. you can get liquidated if the collateral drops to a certain point in relation to the loan value.

just fucking take a personal loan out at a bank. crypto is too volatile to risk your stack.

I have taken 11k$ in loans from aave, bought more Link and will buy a new computer with 1600$.

so link and eth are the same?

I'm just about there too. Market cratering was a blessing for leveraging. Not sure if I would have had the guts to do it with prices so high

There is a .25% origination fee and a .25% repayment fee used to burn lend. They are using your colleteral for flash loans and soon providing liquidity to uniswap to get fees from users of that dex.

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bump

I think it’s fine for things like ethereum, and really you just need to make sure you don’t over leverage. You’re not borrowing against your whole stack. Just do between 15 and 25% imo.

this. manage risk

Yes, Sirgay Nicecock is a clone of the great Israeli inventor, Sergey Nazarov, who was killed in a CIA operation in Saudi Arabia in 1998, three years before the 9/11 terrorist attacks which were organised by the deep state mega-AI, who at the time, was living on an early prototype of the blockchain which had many flaws. To the surprise of the CIA niggers, Sergey Nazarov reappeared in 2008 to publish the Bitcoin white paper. The CIA wanted to transfer the mega-AI onto the Bitcoin blockchain but didn’t have control over it, so they took control of an Australian expat living in the United States, to release Bitcoin SV. Once Bitcoin SV was live, they transferred the mega-AI onto it and the mega-AI went into a crazed state - it was out of control. Sergey Nazarov disappeared into hiding and used the Satoshi Nakamoto pseudonym and eventually the CIA created Chainlink using Sirgay Nicecock as the face of the project. Everybody thought it was Sergey Nazarov, and the CIA hoped the it would cause the real Sergey Nazarov to come out of hiding to denounce the Chainlink network. Instead, the real Sergey used Vitalik Buterin and Nick Szabo to criticise Chainlink in the hope that it would be enough to destroy the project and stop it from compromising Ethereum and Bitcoin. To this day, Sergey Nazarov remains in hiding, while Sirgay Nicecock continues to run the Chainlink CIA operation.

My health factor is at 11. Should I borrow more. I am still scared.

Swing trade other shit, or buy something that's able to be lent at a higher interest rate.

>Who is actually lending to me?
Other users. I have a bunch of shitcoins I'm lending out for example, on top of a bit of USDC I borrowed to set it all up with my Link as collateral. I think I get the rate minus a bit off the top that goes to the platform. That's why the rates vary - more demand means the rate goes higher & vice versa. Tons of Zig Forums anons must be using it, the Chainlink pool is insanely huge & thus the lending rate is basically 0 haha. Its still good to use as collateral though. The best thing to lend is mostly stablecoins, or that Synthetix token/stablecoin especially (I think because the Synthetix investors are constantly trying to burn more to adjust their own staking rewards, that's a whole other thing though).

>risk
Well, it's all collateralised & managed via a smart contract, so the worst that happens I guess the borrower defaults & gets liquidated, thus releasing their collateral to the platform, & I guess the lending rate algo adjusts. Main risk is getting hacked, but it's an open source contract & has been vetted (including by me, I'm a dev myself, though not a solidity expert), so I'm ok with it. For now. I'm still sketchy about flash loans, but that's nothing to do with this. Point is, the interest isn't coming out of thin air like Bitconnect, its all auditable via the blockchain & the rates are far more believable.

im up nearly 7X holding this AAVE Lend thing so far (in about .9Aussie cents and now worth nearly 7 Aussie cents).Wonder where it will top out?
Price prediction for AAVE?

A few bucks at least. How many tokens have a working product that's actually seeing use? It's only going to get bigger, especially if some more utility is found for it. Wish I'd bought back when it listed in Binance now.