>Deposit LINK into AAVE or some other defi platform
>Deposit linkies and borrow DAI with LTV of .1666
>Use dai to buy more linkies
>liq price under one dollar, increase stack size by 1/6 for nothing
Is there a problem with this I'm not seeing? Sounds like free money
Welcome to what I'm doing lmao.
It seems like free money desu bro
or u can skip that step and go to binance where fund is safu?
It is. It's basically the same way that boomers get rich in property - get an asset that appreciates in value, when you have enough gains, leverage the gains without selling the underlying asset to buy more. So long as it keeps going up you're golden. Only risk is on days like today - don't overleverage so far that you get liquidated, I did that on MakerDAO. I thought it honestly wouldn't go below 100 again & paid the price. But then, everyone also knew this dump was coming. Maybe just deleverage before big events like this.
Sure, let's trust Chinks lmao.
Yes. I said 1/6 LTV in the OP but I think i may need to actually calculate a liq price. I really would be amazed to see LINK back under one dollar though.
So maybe 80¢. If it hit that price I might forget about crypto altogether for a while.
retard here, how do you "Borrow DAI"? I understand it literally just means borrowing a crypto currency but is this a feature of exchanges that I've missed? I've only ever used Binance and Coinbase.
don't you get liquidated if the price goes up too high too tho
Much for you to learn. What do you think gives the DAI stablecoin it’s value? Google something called “Makerdao”. Defi is fun