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The process is: Deposit ETH on AAVE (this is a DeFi DAPP) Use this collateral to borrow USDT (~4% APY at current rates) Trade that USDT for ETH. If the peg
by X6S1x6Okd1st 5y ago
The process is:
Deposit ETH on AAVE (this is a DeFi DAPP)
Use this collateral to borrow USDT (~4% APY at current rates)
Trade that USDT for ETH.
If the peg breaks for USDT than I can get USDT for very cheap to pay back the loan and unlock my collateral.
If it doesn't break than I owe ~4% APY for the period that I shorted.
One of the really amazing things about DeFi is that it allows counter-party free financial operations.
Of course that ETH will be worth much less, but long term I am optimistic about ETH.