Is your ETH taking a nap? Learn how to make it "generate" stablecoins in just 3 minutes!
Are you also tightly holding onto your ETH, unwilling to sell but frustrated watching it just sit there? Today, I'll teach you a trick to make your ETH "work for you" and generate liquid funds!
Holding ETH during a bull market is the golden rule, but who hasn't needed cash in a pinch? Selling might mean missing out on a big surge, but not selling can be stressful. That's when a Collateralized Debt Position (CDP) might be your lifesaver!
Simply put, a CDP is like a "crypto pawnshop": you lock in your ETH, and based on its value, the smart contract lends you a stablecoin (like lisUSD). You can spend this money freely—invest further, cover emergencies, or even add more to your position—while your original ETH continues to appreciate.
When you're financially comfortable again, repay the stablecoin plus a small interest, and your ETH comes back to you untouched. This move lets you have your cake and eat it too.
But remember, there's no free lunch! The biggest risk is liquidation. If ETH's price crashes and drops close to your collateral value, the system will forcibly sell part of your ETH to repay the debt, ensuring system safety. So when using CDPs, never push your collateral ratio to the limit—always leave a healthy safety buffer!
How to play it safer and earn more? You must focus on high-quality projects within the ecosystem. For example, @ListaDAO , which has built an efficient liquid staking and stablecoin protocol. Through Lista, your staked assets gain more utility.
The recently popular #USD1理财最佳策略ListaDAO in the community is discussing how to leverage its mechanisms to maximize capital efficiency while controlling risk.
$LISTA , as the ecosystem's core, has its value deeply tied to protocol growth. Deeply understanding such projects may upgrade your CDP strategy from simple lending to a powerful yield-boosting combo. Remember: using CDPs is a skill—use spare cash, not your life savings!
