$17 Million Chainlink being leveraged in Aave and you still haven't bought LEND

It would need to fall under 60 cents. I'm not that leveraged.

.25% origination fee for every loan, and .25% for every repaid debt gets used to burn LEND. LEND will be used as a governance token for the protocol.

Governance will begin when they introduce the capability for anyone to make a liquidation pool on the aave platform. (Setting user defined liquidation rates, allowable collateral, origination/repay fees, apr, interest rates etc.)

Think of Coinbase throwing $100 million in their own liquidity pool, allowing any erc-20 token as collateral and saying "have fun".

AAVE separates itself from other defi projects because the tokens in the liquidity pool aren't just used for lending. They are used for "flash loans" or uncollateralized loans. If you can create a transaction that makes money within the next block, you can use their funds. If the next block isn't an increase in money the transaction cancels. This is used for arbitrage and liquidating collateral debt positions.(Maker's locked eth tanked because people were using flash loans to liquidate themselves rather than lose money).

>It would need to fall under 60 cents. I'm not that leveraged.
It could fail like makerdao and the liquidator bots stop bidding so a villain comes in, buys your link for a cent, which in turn causes your LTV to plummet and the bots getting to liquidate it all

They use chainlink as their oracle and they also have their own oracle as a backup.

If chainlink oracle causes a massive failure, your link won't be worth anything anyway.

Maker also had the capability to auction collateral for 0$ and to have auctions last only 10 minutes.

Most people think it was an insider that bought the 8 million in eth for 0 dollars. That is too much of an oversight

I really want to do this, but I am so afraid of losing all my link... What honestly is the way I can do this with minimal risk of losing my principal?

don't do this if you feel shaky about it. leveraging can cause a lot of anxiety.

If you want a little risk. Deposit a quarter of your stack in aave. Borrow a stablecoin(ie: usdc). Swap it for chainlink on 1inch.exchange, uniswap, or kyber. Then deposit again with that chainlink.

>What honestly is the way I can do this with minimal risk of losing my principal?
Play with fewer link?

I'm very happy with Lend aka Aave. Bough 20k at less than 1c.
Where could it go?

also . DO NOT BORROW CHAINLINK.

That is shorting

I consider aave's floor to be Makerdaos market cap($300m)

AAVE is better in every way and doesn't have the baggage of having to support a stablecoin. Makerdao's model doesn't make any sense. A liquidity pool with the capability for flash loans makes infinitely more sense than just locking up assets.

I would like to do this - is there no payback date on the loan? If the interest is like sub 10% I'm fairly confident this would be a good deal in say 6 months time..

Lol I won't short chainlink, don't worry. Final question: I can *always* just buy USDC on coinbase and send it to AAVE if I fear getting liquidated, right? Is there any scenario where link plummets but I have cash where I can liquidated?

no expiration date. all of the stablecoins variable interest rates are 2-3%.

so this erc-20 scamtoken doesn't have any function you couldn't simply use USD or any stablecoin for, and only had one purpose which was raising funds off gullible investors through some kind of ICO, right?

Yeah that is the case. Or swap an asset not in aave to usdc and pay it back. If you're leveraging only a portion of your collateral at a reasonable liquidation rate, link would have to crater in which case it would not be worth anything anyway.

I wouldn't recommmend borrowing 100% of your borrowing power. I think that is a 65% liquidation rate. So if you have $100 in link and borrow $20 in usdc, if link craters to $33(65% of your collateral) you would get liquidated

All coins work this way. The converse would be like the eth team who hid a ton of eth at launch in wallets the public isn't aware of.

Without a mining token that severely restricts liquidity though.

They are gay and russian.
Plus founders brother was famous telephone marketing fraud.

I'm going to play it very conservative right now. Thanks man. Just use this to buy 20% extra per week than I otherwise would.

no problem!

that's the right idea. LINK has so much volatility and we're all going to make it anyway. Don't need to risk your whole stack if it is going to keep you up at night.

How slow is ethereum? Jheez I've been waiting 15 mins now. This is like bitcoin slow.