If we have money, should we buy more ETH, a PS5, or a MacBook? ✅ No need to choose, same budget but get both. ✅ ETH + MacBook for added security. ✅ ETH + PS5. ✅ ETH + USD for chasing airdrops/farming. ✅ ETH + farming for a stable yield of 50%+ - let's check out new options👇 #liquity

Many times, as ETH maxis, we want to hold as much ETH as possible. Some people stake it, run nodes, or use it for LSD, which will yield more ETH.

But we have other moves that might be even cooler. We can borrow at 0% and use the borrowed money for various other things. I'll gradually share several cases for you to consider.

_____

Usually, borrowing comes with high interest rates. In the real world, if we take out a mortgage for 30 years, the interest can be equal to half of the house's price, paid all at once. So, generally, we try to avoid borrowing.

But if the real world is expensive, sometimes interest rates in DeFi can be even more expensive. When USDC lost its peg, the interest rate exceeded 100% per year – anyone borrowing would have gone crazy.

As for the picture I captured this morning, DeFi interest rates of 20-40% might not surprise us too much. The longer we borrow, the more interest rates can hurt us.

And today, we have @LiquityProtocol, a super cool DeFi platform that allows us to: ✅ Deposit ETH ✅ Borrow at 0% interest for as long as we want ✅ Decentralize ✅ Be censorship-resistant

We will receive $LUSD tokens, which we can then swap for our preferred stablecoins like $USDC, $DAI, or $USDT. Next, it's up to us to decide what to do with the borrowed money.

_____

This is a real case. When $ARB was released, many people used the money to buy MacBook/hardware wallets to enhance their security while in the crypto space.

✅ Buy ETH, use it as collateral, borrow and buy more. When ETH reaches a new high, sell for profit and pay back the loan. You get both the profit and the MacBook.

Some projects require us to deposit stablecoins to receive roles, such as LayerZero > Stargate, where we need to deposit $1000.

LayerZero/Stargate finance

• Deposit funds at https://stargate.finance/pool

• Receive roles at https://guild.xyz/stargate

Connext Network

Connext offers a 3-month pool where the top 30% of contributors with the highest deposits will be able to claim an NFT. This NFT could significantly impact eligibility for receiving airdrops. We can check the required deposit amount at https://dune.com/sdraste/vzhe-zapizno-dao

Many times, in addition to the number of transactions, airdrop eligibility depends on how much money we have put into the system, such as with $ARB.

Borrowing stablecoins to simply deposit and hold in the system can increase our chances of receiving larger airdrops.

You can get decent yields with no initial costs. If the token's price increases, the yield will also increase. We all know how awesome these launchpads are.

🔥 This option is riskier. You need to be more cautious compared to simply borrowing and holding stablecoins.

As I'm writing this, if you deposit $DAI on Aave, you can get a yield of over 54% (the rate may change continuously). You can check the rates regularly at https://defillama.com/borrow?borrow=LINK&lend=USD_Stables

A tip for finding high-interest lending platforms is to use the DeFiLlama website mentioned above. Choose any stablecoin to lend > borrow a coin that isn't frequently borrowed, such as LINK. Make sure to thoroughly check the platform before lending. The example provided above is currently ranked #1, Aave.

_____

To deposit ETH and borrow $LUSD, you'll need to do it on the ETH mainnet. Go to https://www.liquity.org/frontend, where you'll find various user interfaces to choose from. You can use this one below as a starting point.

https://app.defisaver.com/liquity/smart-wallet/manage

Click "Open Trove"

• Enter the amount of ETH you want to deposit

• Enter the amount you want to borrow

There's a one-time 0.5% fee, and no interest even if you borrow for many years. It's more profitable than depositing in a bank. ⚠️ The risk is that if the price of ETH drops significantly, our position might get liquidated.

The red circle indicates the price at which our position will be liquidated if ETH drops to that level. In that case, we need to deposit more ETH.

✅ We shouldn't borrow too much beyond our means
✅ Plan to manage the position in case ETH drops significantly

Liquity is a tool on the mainnet, and you need to borrow more than $1800 to use it. Therefore, you should have more than 1.2 ETH to be able to use it, and personally, I think it's better to have a collateral ratio of more than 190% for peace of mind. **Please don't borrow more than you can handle.

Thank you for reading! If you like this content, feel free to subscribe, and I'll keep creating more great content for you.

If we have money, should we buy more ETH, a PS5, or a MacBook? ✅ No need to choose, same budget but get both. ✅ ETH + MacBook for added security. ✅ ETH + PS5. ✅ ETH + USD for chasing airdrops/farming. ✅ ETH + farming for a stable yield of 50%+ - let's check out new options👇 #liquity

Many times, as ETH maxis, we want to hold as much ETH as possible. Some people stake it, run nodes, or use it for LSD, which will yield more ETH.

But we have other moves that might be even cooler. We can borrow at 0% and use the borrowed money for various other things. I'll gradually share several cases for you to consider.

_____

Usually, borrowing comes with high interest rates. In the real world, if we take out a mortgage for 30 years, the interest can be equal to half of the house's price, paid all at once. So, generally, we try to avoid borrowing.

But if the real world is expensive, sometimes interest rates in DeFi can be even more expensive. When USDC lost its peg, the interest rate exceeded 100% per year – anyone borrowing would have gone crazy.

As for the picture I captured this morning, DeFi interest rates of 20-40% might not surprise us too much. The longer we borrow, the more interest rates can hurt us.

And today, we have @LiquityProtocol, a super cool DeFi platform that allows us to: ✅ Deposit ETH ✅ Borrow at 0% interest for as long as we want ✅ Decentralize ✅ Be censorship-resistant

We will receive $LUSD tokens, which we can then swap for our preferred stablecoins like $USDC, $DAI, or $USDT. Next, it's up to us to decide what to do with the borrowed money.

_____

This is a real case. When $ARB was released, many people used the money to buy MacBook/hardware wallets to enhance their security while in the crypto space.

✅ Buy ETH, use it as collateral, borrow and buy more. When ETH reaches a new high, sell for profit and pay back the loan. You get both the profit and the MacBook.

Some projects require us to deposit stablecoins to receive roles, such as LayerZero > Stargate, where we need to deposit $1000.

LayerZero/Stargate finance

• Deposit funds at https://stargate.finance/pool

• Receive roles at https://guild.xyz/stargate

Connext Network

Connext offers a 3-month pool where the top 30% of contributors with the highest deposits will be able to claim an NFT. This NFT could significantly impact eligibility for receiving airdrops. We can check the required deposit amount at https://dune.com/sdraste/vzhe-zapizno-dao

Many times, in addition to the number of transactions, airdrop eligibility depends on how much money we have put into the system, such as with $ARB.

Borrowing stablecoins to simply deposit and hold in the system can increase our chances of receiving larger airdrops.

You can get decent yields with no initial costs. If the token's price increases, the yield will also increase. We all know how awesome these launchpads are.

🔥 This option is riskier. You need to be more cautious compared to simply borrowing and holding stablecoins.

As I'm writing this, if you deposit $DAI on Aave, you can get a yield of over 54% (the rate may change continuously). You can check the rates regularly at https://defillama.com/borrow?borrow=LINK&lend=USD_Stables

A tip for finding high-interest lending platforms is to use the DeFiLlama website mentioned above. Choose any stablecoin to lend > borrow a coin that isn't frequently borrowed, such as LINK. Make sure to thoroughly check the platform before lending. The example provided above is currently ranked #1, Aave.

_____

To deposit ETH and borrow $LUSD, you'll need to do it on the ETH mainnet. Go to https://www.liquity.org/frontend, where you'll find various user interfaces to choose from. You can use this one below as a starting point.

https://app.defisaver.com/liquity/smart-wallet/manage

Click "Open Trove"

• Enter the amount of ETH you want to deposit

• Enter the amount you want to borrow

There's a one-time 0.5% fee, and no interest even if you borrow for many years. It's more profitable than depositing in a bank. ⚠️ The risk is that if the price of ETH drops significantly, our position might get liquidated.

The red circle indicates the price at which our position will be liquidated if ETH drops to that level. In that case, we need to deposit more ETH.

✅ We shouldn't borrow too much beyond our means
✅ Plan to manage the position in case ETH drops significantly

Liquity is a tool on the mainnet, and you need to borrow more than $1800 to use it. Therefore, you should have more than 1.2 ETH to be able to use it, and personally, I think it's better to have a collateral ratio of more than 190% for peace of mind. **Please don't borrow more than you can handle.

Thank you for reading! If you like this content, feel free to subscribe, and I'll keep creating more great content for you.