Stage 1 (Fiat Debt Reduction)
As part of my transformation from Sin Eater to Virtue Nibbler, I plan to lock it down with an AAVE experiment. For the purposes of this experiment, consider the Sin Eater as the one caught in Fiatville and the Virtue Nibbler as the one planting roots in Ethland. (Not EthLend, that's AAVE now!)
Here's the situation:
Sin Eater financial profile is as follows (fiat in CAD):
- INCOME: Salary $65,000/year
- DEBT: Credit card #1 $10,000
- DEBT: Credit card #2 $15,000
- DEBT: Credit card #3 $600
- DEBT: Line of credit $10,000
There are no assets and no additional disposable income, the Sin Eater has been an abject failure in Fiatville... (it's a fact)
Virtue Nibbler financial profile is as follows (fiat in USD):
- ASSET: 6 ETH ~$17,000
- ASSET: 350 REN ~$340
- ASSET: 5 RenFIL ~$825
- ASSET: 1000 USDC ~$1000
- DEBT: 5 RenFIL ~$825
- DEBT: 4700 USDC =$4700
- LTV = 30% (target)
- Health Factor = 2.73
The first part of the experiment took place yesterday, I borrowed $3700 to pay off a credit card. That credit card is now removed from the Sin Eater financial profile above and we can monitor the effects going forward with the Virtue Nibbler portfolio seen in the pic at the top. The path I took to do this, for those interested, was the following (I'm sure there are better ways but this is how I'm doing it!):
- Deposit ETH and REN to AAVE
- Borrow $4700 USDC
- Deposit $1000 USDC back (to repay and maintain target LTV and Health score while offsetting some interest)
- Convert $3700 USDC to renBTC (used zapper.fi)
- Go to Bylls.com and set up the bill payment to match the incoming BTC payment (Canada option only and it's run by maxi's who only accept BTC and that's OK, thanks to RenBridge!!! HAR!)
- Go to RenBridge, connect wallet, send renBTC to Bylls.com to cover the bill payment they made in CAD for me (in exchange for the BTC)
- Total cost (gas for transactions and BTC network fees) = 0.1 ETH (~$280)
My GOAL is to repeat this process for the other 4 Sin Eater debts and see how long it takes to "be my own bank". It hinges primarily on the price of ETH and gas fees but the worst case scenario is that the Virtue Nibbler gets fucked and the Sin Eater survives.
The best case scenario is that they both survive, abundantly!
Time will tell! I'll do weekly updates on the portfolio, to keep all my selves in check.
Be safe out there kids, Fiatville is a tricky place to thrive on ur own.
PS: The 5 renFIL on both sides is a side experiment, ignore that for now!