14 ms·

Dollars via aave

• ElKrist 5y ago
  Do 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 ago
    It 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 ago
      Clarification 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.