9 ms·
I agree. Recently purchased a home with a loan from aave polygon and it was pretty painless.
by diveanon 5y ago
I agree.
Recently purchased a home with a loan from aave polygon and it was pretty painless.
- hirsin 5y agoIs your loan delimited in dollars or non-stable crypto?
- diveanon 5y agoDollars via aave
- ElKrist 5y agoDo you mind sharing the details like amount of crypto(s) / USD, interest rates, repayment terms etc. You could scale all money numbers (not durations please) by a factor if you prefer. I'm interested to see a real-life example
- diveanon 5y agoIt was on Aave polygon. There are no repayment terms per say, just interest charged on the loaned amount. Aave has variable interest on stables that varies between 7-4% and they offer an incentive bonus of about 3% MATIC, making the effective rate 1-4%. My loan to value rate is around 35%, which gives me a very healthy liquidation buffer in case the market gets even more volatile. My collateral is mostly BTC and ETH, with smaller holding of MATIC and AVAX. It’s a really nice system, I get to keep my crypto holdings and extract real world value. Paying 1% interest on a loan backed by assets that are appreciating 100% a year feels really good. As an additional safety precaution I wrote a smart contract to liquidate some of my other positions if I am ever at risk of being liquidated by Aave to avoid the liquidation penalty.
- iskander 5y agoClarification for confused outsiders: crypto loans are over-collaterized using crypto assets. In case of non-payment, Aave won't come try to collect your house, instead they'll just keep some other crypto that you put up as collateral.
- reginold 5y agoIs there any credit impact or such from paying with a loan?
- diveanon 5y agoNope, it uses my crypto as collateral and operates outside the credit system.