First posted on https://www.bulbapp.io
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Good morning/evening.
I have more than doubled my Optimism and by that I don't mean how bullish I am, but how I doubled my Optimism tokens that I earned from Publish0x.
Aave
As with all things crypto, timing and research are needed and I did do my research before diving in. I have been using Aave for a while now and put some of my Bitcoin to work by borrowing a stablecoin and use that to buy more Bitcoin. (In my opinion, risk on top of risk, BUT I am conservative in what and how much I borrow). So I thought I would try the same process with my OP token.
Now I class this as free crypto, yes I had to write to earn it, but I enjoy that so it does not feel like work, so I am taking a gamble with some free crypto I was prepared to lose and remember I did a lot of research before I used this platform for some of my BTC!
I started with 28.76 OP (Around $47) which was on Metamask so it was easy to transfer to the Optimism market on Aave. Then I went to borrow and took some USDT ($20) then I used that to buy 11 more OP using 1 inch and transferred that to Aave. I had studied the charts beforehand to the best of my ability and expected some movement to the upside.
As you can see on 25th November I repaid around half of my loan as the price of OP had gone up to $2.20. I could have paid back all of my loan, but see more upside when/if that happens I will pay off the rest of my loan.
Health score
Now when you use Aave you get a health factor with 1 being liquidation but I like to keep my score above 2.
As a bit of a degen move and studying the chart I could well repeat the process as OP is still in an upward trend. I am well below the max threshold of the amount I can borrow, I keep an eye on my health score and the price of OP. One thing to also consider are the liquidity levels available on your market of choice, which currently on Aave are very healthy.
I did think at first that it was not worth doing for such a small amount of tokens, but hey who does not like doubling (or more) their crypto. and as it only took 5 minutes then why not.
Are you using platforms like Aave?
As always, thank you for reading and please feel free to comment.
