Aave

>How is this better than margin trading?
There is no expiration. I'm not paying that loan off until the next bull run. And with aave, I can wait for that and more

How much would I have to deposit to borrow 10k?

You're borrowing money to buy link at a low price, link goes up, you suddenly can pay off loan plus you have a bunch of extra link. You wouldn't do this if you don't think link is going up

what if stani kulchov pulls the greatest heist in history and Russian scams all of you out of millions of linkies?

Depends how leveraged you want to get. Theoretically you could deposit maybe 5k link to borrow enough stablecoin to buy 10k, but I would not recommend it. I try to only borrow like 35% of my collateral

It's going to 7+ next month so yes I believe it's going up

Aave doesn't hold the coins, they're in an open source smart contract that you can verify for yourselves

Ah so I can sell the link to aave while it’s collateral?

What about 10k low leverage?

no you withdraw enough LINK to pay down your debt when your long is in profit and sell it somewhere, once the debt is paid down you can withdraw the rest of your deposit, either to keep as LINK or liquidate to fiat

it's more about what liq price you are willing to tolerate, liq price = (debt/0.7)/LINK collateral

>borrow money
>dont pay it back
based

which price feeds does Aave get its link price from?

So if I deposited 10k @ $3, they would let me withdraw 5k @ $6 to pay back the entire loan?

Chainlink
I'd personally feel best around 15k deposit for that, but I'm pretty conservative (for a borrower)
You have to sell the link on an exchange, but you can withdraw parts of your deposit as you like. The idea is that link has gone way up, thus you need less of your deposit anyway, so withdraw, get stable, and pay back

>So if I deposited 10k @ $3, they would let me withdraw 5k @ $6 to pay back the entire loan?
Yes, exactly right. Plus interest

So if I put up my entire stack 20k to borrow 10k link (34,700 USD) my liquidation price is $2.47?

yes

Makes sense, thx for the help!

chainlink and proprietary, defense in depth

This guy said I could get my liquidation price under $1

Don't touch this shit. Suterusu staking is the way to go until summer desu.

Do you lose it all at once or does your funds cover the loss as it goes down until you have no more?

Oops wrong person, this guy

against 20k LINK deposit a $14000 loan would put your liq at $1

Not quite, because you then deposit the 10k link back on aave thus increasing deposit by 10k*2.47 which would bring it way down again

I think it would be 34,000 * .7 / (34,700 + 34,700*.5) = 1.6

Am I wrong?

by deposit i meant total collateral, assuming had already reached his desired leverage

>You get money/object
>After set period of time it gets taken back, albiet with a bonus for the person who owns said item (Interest)

This seems too good to be true, and if I want to double my 10k stack I’m risking it being hacked by the exchange or some BS system crashes down and everything is gone. Where’s the catch here?

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>(debt/0.7)
Okay, why did you divide? I'm super high here and have gone into total brainlet mode

What’s the formula to calculate liquidation price?

Also if there’s no deadline to pay back? (What the anons imply here) then can’t I technically use the LINK I have as collateral to withdraw twice my stack as a loan and run without paying?

It most likely is right now. All of these smart contracts like maker function the same. Ways for people to use leverage. But with huge candles and bad coding a lot of people lost their eth on maker. This will likely be similar. So many anons losing their linkies due to greed. Greed kills stacks, no different than swing linkers.