Put a bid on a house and originally planned to sell a small bag of linkies for the minimal downpayment. Seems like the big brain move is to stake linkies on aave, take out a stablecoin loan, and "cash out" through coinbase to my bank account. I would keep exposure to link and it seems like we are in a good up trend now. I realize that a market crash could liquidate me, as the LTV needs to be 60% at aave for link. Seems like other than that, it is a pretty safe play. Kinda funny that my birds eye view of the idea is to sort of send money from 'future me' selling at a future (higher) link price to 'present me' to fund the house downpayment. Anyway, what might I be missing in terms of risk? I am thinking that I should give aave enough linkies that would correspond to about 2 times the amount of value I would borrow in stable coins so that my health factor stays good. As well, i would plan (like I dont already) to watch the price movement to add additional collateral if the health factor goes down. Also, I would think that the loan is not taxable but I know crypto to crypto is though I dont get that yet as I though tis was all about profit.
t. after all in, took out loan at $2.38 to buy more links. still havent sold those back.
nice picrel you risk aave smart contract failure. consider the cost of insurance in your calculations.
David Perez
My head hurts just thinking about how to figure out the taxes for something like this
Kevin Jones
Actually now that I think about it, you SHOULDN'T owe taxes on anything, because you're not selling anything. You're taking a loan.
Just hope the IRS sees it the same way and doesn't come knocking about "hey goy how'd you get all that USDC???"
Carson Howard
Just to triple post here, people do this with stocks all the time. It's literally what Elon Musk does with his TSLA stock, he never sells it, he uses it as collateral for loans so he never has to pay capital gains tax.
Evan Garcia
Yikes. I’d keep it at 4 at least. Mine is at 8 and I’m nervous.
Michael Scott
taxcucks argue that selling the loaned stablecoin for usd is a realization of gains others argue that exchanging your link for alink is also a taxable event
Andrew Rogers
only in insane retard land would either of those things be true but of course that's exactly where we live
Joseph Walker
There is no argument, just literally what the tax office said
Joseph Green
yes it is ridiculous but you ought to consider the possibility. however, you will probably be able to outpace and outlast potential attempts at retroactive taxtheft
Michael Rivera
What is the process of "paying back" your aave loan when you are ready to close it? What do you have to do and how to do you pay it?
Getting bat and swapping it for a stable coin is better imo because the interest rate is literally a fraction of 1%. Opposed to stable coins that regularly go above 10% interest. Especially right now when BAT is being pumped for no reason and and the price hasn’t even dumped yet. I was doing something similar on cream finance
Julian Bell
Do you have to repay it with stable coins or whatever you borrowed with?
David James
Be careful, LINK to aLINK may be a taxable event depending on what country you're in. It shouldn't be because it's exchangeable 1:1 and theoretically the same asset so it's a hassle to deal with this bs.
John Adams
yeah i asked around and noone seems to know the answer here
That’s such fucking bullshit only a full blown cuck would pay that. Crypto makes all of these legacy tax schemes obsolete. Either millions of freedom loving folks make a stand here or we’re heading for the prison planet timeline.
Eli Sanders
He posts that shit in every AAVE thread because he's mad the Lord spawned him with a penis. Transformers make up wazoo anxiety inspiring imaginary scenarios because they want you to be as neurotic as they are.
>what Elon Musk does with his TSLA stock, he never sells it Factually untrue
Nicholas Gomez
user what the fuck is wrong with you. 5 should be MINIMUM.
Carter Bailey
Also, why the fuck are you buying a house right now user? If you haven’t made it yet why the fuck are you doing anything to jeapordize your linkies. And right before a bull market, no less. I am ashamed
Samuel Thompson
the wrinkles are growing user >im in a much different place than you still have multiple make its
