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So i now has 380,000 usdx supplied in lend. I

realised i can borrowed about 90,000 BUSD. Is it safe to borrow this 90,000 BUSD without any risk of liquidation? Effective APY is -20% but if I take that 90,000 BUSD to lock up again, I can borrow 90,000 usdx which can yield me 67% in kava lend

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Just keep in mind that usdx liquidity is not so good and it can fluctuate. Usdx can in fact cost 90, 80 or less cents

Andy-Lau Tak-wah Автор вопроса

No, the risk is very high....I recommend to borrow a less amount...

Andy-Lau Tak-wah Автор вопроса
Alex
No, the risk is very high....I recommend to borrow...

ya in the end i won't do it as it too dangerous for just a bit of yield

You need to allow for the price of USDX and hence that $90k figure to change as USDX uses a 12 hour averaged price feed, so if you assumed that USDX could fall to 90c before you can take action then you would have to assume the max borrow perhaps would be closer to 85,000 BUSD unless you watch the price of USDX atleast a couple of times a day Also as BUSD borrowing is in demand then the borrow APY can be high which would increase that borrow balance gradually You do also get borrow rewards for borrowing BUSD

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