I used to think leverage in DeFi was basically one thing.
Borrow funds, take a bigger position, and manage the risk.
But looking at TermMax, there are actually several ways to use leverage depending on what you’re trying to do.
If you want something simple, the One-Click GT purchase gives you a direct way to get leveraged exposure without going through a complicated setup.
If the money is going into another investment outside TermMax, fixed-rate borrowing makes more sense because you already know what the borrowing cost will be.
You can also keep everything inside TermMax by combining borrowing and investing in the same strategy.
Then there’s yield-bearing collateral.
Instead of having your collateral sitting there doing nothing, it can continue earning yield while you use borrowed funds at the same time.
And for someone who wants much more leverage, recursive leveraging takes it further by repeating the borrowing process.
But that one also comes with much higher risk, so it’s definitely not for everyone.
That’s probably the part I keep coming back to with @TermMax .
It’s not just one way of getting leverage. You can choose the setup based on where you want to deploy the capital and how much risk you’re willing to take.
#TermMax
Which one would you actually use?
Borrow funds, take a bigger position, and manage the risk.
But looking at TermMax, there are actually several ways to use leverage depending on what you’re trying to do.
If you want something simple, the One-Click GT purchase gives you a direct way to get leveraged exposure without going through a complicated setup.
If the money is going into another investment outside TermMax, fixed-rate borrowing makes more sense because you already know what the borrowing cost will be.
You can also keep everything inside TermMax by combining borrowing and investing in the same strategy.
Then there’s yield-bearing collateral.
Instead of having your collateral sitting there doing nothing, it can continue earning yield while you use borrowed funds at the same time.
And for someone who wants much more leverage, recursive leveraging takes it further by repeating the borrowing process.
But that one also comes with much higher risk, so it’s definitely not for everyone.
That’s probably the part I keep coming back to with @TermMax .
It’s not just one way of getting leverage. You can choose the setup based on where you want to deploy the capital and how much risk you’re willing to take.
#TermMax
Which one would you actually use?
One-Click GT Purchase
67%
Fixed-Rate Borrowing
33%
Yield-Bearing Collateral
0%
Recursive Leveraging
0%
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