[MegaByter]

Lending and borrowing is probably what attracted me to defi, now it all is starting to connect.

Just threw in $500 on aave and earning interest already lol, hmmm this is cool.

GREAT explainer on how the AAVEs and Compounds of the defi world work!
Thought I'd share!

[DBS1337]

Was looking for a good solution to stake / lend stablecoins. Although, with these rates neither Aave or Compound can compete.

[God]

The amazing thing with AAVE is that there will still be incentives to lend your money regardless of whether we're in a bull/market. Of course rates may be lower, but at least it's fundamentally sound

[MegaByter]

Was looking for a good solution to stake / lend stablecoins. Although, with these rates neither Aave or Compound can compete.

what exactly do you mean? Who can't compete with who ?

[DBS1337]

what exactly do you mean? Who can't compete with who ?

The APY reward for lending USDT / USDC / DAI is ~ 3% per year. That's fairly low compared to BlockFi / Celsius / Nexus. I do get these are dexes, - regardless I don't know why people use these sites besides borrowing and betting against their crypto. For passive income I just don't see how they can be profitable when you have site that offer x5 of the interest sites with the same - and possibly - lower risk. Correct me if I am wrong.

[MegaByter]

The APY reward for lending USDT / USDC / DAI is ~ 3% per year. That's fairly low compared to BlockFi / Celsius / Nexus. I do get these are dexes, - regardless I don't know why people use these sites besides borrowing and betting against their crypto. For passive income I just don't see how they can be profitable when you have site that offer x5 of the interest sites with the same - and possibly - lower risk. Correct me if I am wrong.

BlockFi , Celsius etc... are subsidizing those interest rates from VC money. Not sustainable.

AAVE and Compound give you tokens that represent your deposits, which can be further used in Defi, plus other defi apps build on top of these protocols too. It can't even compare to the companies like blockfi etc...

whole different ball game.

and the interest / borrow rates on aave or comp are always changing, could be saw 9% deposit rate yesterday, today I see lower, etc... its all supply and demand, not sure if you watched the video i share , but its impressive

[shreder]

The APY reward for lending USDT / USDC / DAI is ~ 3% per year. That's fairly low compared to BlockFi / Celsius / Nexus. I do get these are dexes, - regardless I don't know why people use these sites besides borrowing and betting against their crypto. For passive income I just don't see how they can be profitable when you have site that offer x5 of the interest sites with the same - and possibly - lower risk. Correct me if I am wrong.

If you view a trusted third-party as lower risk than DeFi then you have it all backwards.

[MegaByter]

The amazing thing with AAVE is that there will still be incentives to lend your money regardless of whether we're in a bull/market. Of course rates may be lower, but at least it's fundamentally sound

yeah! i mean the rates are pure supply and demand, so its exciting to see a "Transparent" new age bank take form.

[CollectingTime]

How can I lend my money there ? I simply have to buy the coin or ?

[MegaByter]

How can I lend my money there ? I simply have to buy the coin or ?

yeah you fund and connect your metamask wallet, then deposit USDC or DAI or something.

[DBS1337]

yeah you fund and connect your metamask wallet, then deposit USDC or DAI or something.

I tried figuring out, but where is the risk exactly when your borrow against your USDC?

Example:

I deposit $100k USDC in AAVE. Now, I would borrow 50% against it in USDC.

My therefor total would be $150k, - 50k being the loan. I would now earn interest on the 150k$.

Technically, I could redo this and borrow on the 50k$ against, another 25k$ if I am not mistaken?

On volatile assets I get the risk of liquidations and short squeezes, - but with stablecoins I haven't quite figured out where the risk would exactly belong.


// I was quite wrong when I first commented on here, done some research and AAVE looks pretty neat.

[MegaByter]

I tried figuring out, but where is the risk exactly when your borrow against your USDC?

Example:

I deposit $100k USDC in AAVE. Now, I would borrow 50% against it in USDC.

My therefor total would be $150k, - 50k being the loan. I would now earn interest on the 150k$.

Technically, I could redo this and borrow on the 50k$ against, another 25k$ if I am not mistaken?

On volatile assets I get the risk of liquidations and short squeezes, - but with stablecoins I haven't quite figured out where the risk would exactly belong.


// I was quite wrong when I first commented on here, done some research and AAVE looks pretty neat.

Well its not "risky" if you're lending and borrowing the same stable coin asset, your loan interest rate will outweigh the current rewards.
So you're paying for a loan on the same asset, which I don't really see the reasoning behind. But you can do it.