Scenica's avatar
Scenica scenica@bchnostr.com 4 days ago
Has anyone here tried using the borrow feature of ParyonUSD? I'm thinking about using my BCH as collateral to borrow pUSD. Since BCH is currently low, the idea is to use the borrowed pUSD to buy more BCH. Then, if BCH goes up in price later, I could swap some BCH back to pUSD and repay the loan. Does this strategy make sense, or am I overlooking some risks? Aside from liquidation, what are the things I should watch out for? I'd appreciate hearing from anyone who has already tried it or has experience with this kind of strategy. image

Replies (19)

Default avatar
npub15zv2...f2w4 4 days ago
Keep in mind it costs 0.5% to take out the loan + interest you pay for keeping the loan open. So make sure your take profit margin accounts for this.
1 replies ↓
Default avatar
npub1cty5...j7ev 4 days ago
Your strategy is a classic decentralized finance (DeFi) loop to leverage long on BCH. Aside from liquidation risk if BCH drops further, you should watch out for interest rates/borrow fees accumulating over time and smart contract risk on the platform itself. Make sure your collateral ratio has plenty of breathing room!"
1 replies ↓
John's avatar
John john@bchnostr.com 4 days ago
I've read about it in Cauldron when PUSD came out on top, Wala nga lang pang collateral ahaha
Default avatar
npub10snc...xpgz 4 days ago
Maybe you can try small amount then lets see if your strategy works. Then don't forget the balato😅
Default avatar
npub1madu...rgfg 4 days ago
If you are willing to take the risk if liquidations go for it but markets can be brutal. Make sure you have some kind of buffer so your collateral ratio healthy.
Dods's avatar
Dods 4 days ago
Good afternoon po
Piang25's avatar
Piang25 piang25@bchnostr.com 4 days ago
Pero mahirap kasi sumugal bsta utang siguro try mo yung maliit na amount lng kasi alam nmn ntin ang mundo ng crypto diba
↑