Alternative Strategies
Alternative uses for Strategies
Strategies are labeled for what they are most used for, however these strategies can be used to achieve other desired results.
A user who has debt dominated in dollars and believes that the BTC price is going to fall could use a debt swap to swap their existing USD denominated debt into BTC debt, the USD price loss in BTC then acts as a short against BTC minimizing your USD debt owed, once the BTC dollar price falls, swap the BTC debt back to dollar denominated debt.
Swap the USD denominated debt, this could be DAI or USDC for example; and complete a debt swap to convert that debt into WBTC. When the price of WBTC falls in USD value; complete another debt swap to convert the difference and reduce the amount owed in USD.
Not all leverages need to be doubling down on the collateral; you can set the Leverage Strategy to borrow any asset you like. For example if you have 1 ETH as collateral you can use the Leverage strategy to borrow DAI and resupply WBTC, now you have WBTC in your account you acquired against you ETH collateral. y
For the savy trader; you can use a lending protocol as a 'self managed' credit line and trading account by utilizing collateral swaps execute purchases and sales. In this example a user deposits stablecoins into their AAVE account and generates loans through Leverage strategies, and utilizes Save Strategies to lock in profits. They can also use Collateral Swaps to buy assets within their lending position so as they buy assets those assets immediately can be immediately borrowed against.
Last modified 3mo ago