Inflation is currently the hottest topic in the US. The Fed is signaling that they will be raising rates, which causes:

• Bond yields go up, which means cost of capital goes up

• Equity markets go down as investors move to lower risk assets

• Crypto suffers from non-degen capital exiting the system as well

In this kind of environment, you can still get a zero interest loan in DeFi through the Liquity protocol. Scoop up ETH at a lower cost basis, deposit it into a trove and take out a loan for a small upfront fee (as low as 0.05%) plus gas costs. That’s it. No interest on it, ever. The longer you have the loan, the more the upfront costs get amortized.

You’ll still need to keep an eye out for your collagenization ratio (CR), taking care to not get liquidated during dips and flash crashes.

Additionally, scoop up some LQTY tokens and stake them to earn a piece of the protocol’s revenue. 100% of protocol revenue goes to LQTY stakers. In a high interest environment, perhaps there may be some demand for some zero interest loans.

Probably nothing…