WARNING
If you have taken a loan in DAI, you may want to switch it for USDC as the peg has been increasing (now 1.02$ / DAI). If things get crazy because of yield farming the peg may break upwards.
DAI on chain: 108m
DAI in compoundfinance : 344m
Be careful everyone
for the brainlets, please....how do I make money on this
defisaver dapp
Have stablecoin
Use the borrow supply tool to borrow and supply the same stablecoin
You now have zero liquidation risk. Assuming you didn’t borrow against your crypto stack to get the dai/usdc in the first place. For added bonus, take the leftover stablecoin and put it into a balancer pool
You could speculatively buy DAI if you think the peg will break upwards
But my message is more important for those who borrowed DAI, their loan value may go up unexpectedly because of compound yield farming madness and demand exploding. See pic
Why would anyone take a stablecoin loan? I'm semi new and I just swap my profits to dai all the time.
Let's say you hold LINK and you want to buy something else that you think is going to pump but you don't want to sell, you can use your LINK as collateral to borrow a coin (stablecoin preferable as it shouldn't spike up). So you keep your bag of LINK and you also get liquidity to ride other pumps. Of course, if things don't work out you'll have to figure out a way to repay the loan and you have to be careful about risk of liquidation if the price of LINK suddenly drops heavily
what if link price goes heavily up? do i have to pay more to get it back?
Thanks for the explanation user.
Okay, so How do I do a collateral swap? I used LINK as collateral on Aave to borrow DAI to buy BNT and DMG. I can't sell my BNT and DMG to pay back the DAI right now, I bought both pretty close to the top. Can I refinance my loan to USDC or USDT on Aave or something?
sounds like its all a house of cards about to collapse at any minute
There’s some way you can do this using a flash loan. Maybe furucombo?
>You now have zero liquidation risk
Don't forget interest. Some got wiped out because the borrowed the max amount and forgot to leave a buffer for interest accumulation.
No. If you borrowed 10 USDC and then LINK doubles you just need to pay back 10 USDC + interest.
Instadapp does this for compount + maker but they don't support aave yet.
How much space do you have for a new loan? You need to borrow USDC/T, swap for Dai, pay back your Dai loan. If the buffer is small you'll need to do this in multiple steps to stay safely below the liquidation point.
Am I only one whos not farming on limit in case of stablecoins losing pegs during volatile times?
Like im farming usdc/usdt 4x fold on 60/75 factor and i see everyone doing this 70/75...
I mean I have 10k$ just in this fold and why risk it all for 20% more gainsway I see it:
60/75= 20% peg brake buffer
70/75= 6% peg brake buffer
+small rise of lq factor during intrests
Usdt and uscd did loes peg for over 8% during black swans if you look charts....
So is everyone retarded or im just to much of pussy?
no thats the point by using something as coleterall you basically going long on asset only problem is if asset dumps hard
and vice versa
By borrowing you are basically shorting asset
>You need to borrow USDC/T, swap for Dai, pay back your Dai loan.
That's smart, thanks. I'm only using ~$3000 of DAI against a much, much larger stack of LINK, so unless DAI suddenly goes to like $4 I'll be fine
>So is everyone retarded or im just to much of pussy?
First one. A minor peg break on DAI/USDT/C would wipe out a lot of farmers. Dai's peg breaking upwards is a real possibility.
Also, should I even be worried about this if my health factor is >4? Thanks in advance.
No problem. I'm at 2.1. >4 wouldn't stress me at all.
Yeah figured everyone so greedy in stablecoin farming for extra 10-20% while you can play it safe and still earn huge intrest
Use www.debank.com to precisely find out your liquidation in defi products. Over 4 puts your liquidation threshold at around 1.10 dollar LINK. Comfy.
>>Dai reaches new highs of 7 dollars before violently crashing.
Maker has mechanisms to prevent DAI from breaking the peg, why should I be worried exactly?
bump ; )
Waht are we bumpin here ?
If you are not retard you wont get rekt thats the thread
If youbhave enough collateral you can take out a new loan in usdc; convert it to dai and pay back your first loan.
If the Lord wanted me to do that be wouldn't have given me debt to begin with.
>sounds like its all a house of cards about to collapse at any minute
this, lol.
>what go rong, etc
fuck shitcoins and fuck shitcoin shills
I'm not shilling anything here but thanks for bumping
Is there an easier way to swap borrowers assets? I have usdt and I want to swap to eth ( for whatever reason ). Do I really have to borrow eth, sell eth for usdt, then pay back usdt?
Or reignite the next bubble and make everything 50-100x
I'm fucking deep in LEND
Yeah I don't think there's an other way to do collateral swaps on aave yet, maybe with flash loans but that requires some coding
instadap