Hi All, If I deposit 1 ETH on AAVE, can

Question

Hi All, If I deposit 1 ETH on AAVE, can

I use it as a collateral to borrow 0.5 ETH (that is at 50% LTV)? Since it's less likely that the ETH value will drop 50%, so that I don't need to worry too much about liquidation threshold. Thanks

#aave #blockchain #cryptocurrency #english

0

30.01.2022

9 ответов

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Sam Nakamoto Автор вопроса

HelpfulBrother
Yes, you can do that.

thanks, that means I can set the loan to value ratio manually on AAVE? whether 50%, 60% for instance?

0

30.01.2022

Sam Nakamoto Автор вопроса

HelpfulBrother
Yes, you can do that.

thanks, does that mean I can set the Loan to Value Ratio (LTV) manually on AAVE? For instance if I want LTV to be at 50% or 45% I can set it up manually there?

0

30.01.2022

HelpfulBrother

Sam Nakamoto
thanks, does that mean I can set the Loan to Value...

Yes you can borrow up to your maximum LTV for the deposited collateral. If you want to borrow less than Max you can just choose a smaller amount.

0

30.01.2022

Sam Nakamoto Автор вопроса

HelpfulBrother
Yes you can borrow up to your maximum LTV for the ...

Is there a deadline when I have to pay back the loan or that can be set up manually too or it can be repaid anytime convenient? The impression I got is that 'the loan can be paid back anytime', if I choose the stable APY at 3.44% that means if I borrow 1 ETH, I have to pay back 1.34 ETH after one year, and 1.68 ETH after 2 year?? Correct me if I'm wrong. Thanks

0

30.01.2022

HelpfulBrother

Sam Nakamoto
Is there a deadline when I have to pay back the lo...

Anytime but you need to ensure your LTV does not get too high and you are liquidated. 1 ETH at 3.44% is 1.034 after a year.

0

30.01.2022

Sam Nakamoto Автор вопроса

HelpfulBrother
Anytime but you need to ensure your LTV does not g...

Ah yes, you're right, what if I borrowed 1 ETH at 0.31% Variable APY? How much do I have to pay back in a year? cz I don't really understand the difference between variable and stable APY. Thanks again.

0

30.01.2022

HelpfulBrother

Sam Nakamoto
Ah yes, you're right, what if I borrowed 1 ETH at ...

Variable means it can change, 0.31% today 2% tonight, 0.5% tomorrow. Stable although higher is less likely to change.

0

30.01.2022

Sam Nakamoto Автор вопроса

HelpfulBrother
Variable means it can change, 0.31% today 2% tonig...

Wow, thank you so much, I understand how aave works now, will use it for sure, many many thanks 😀

0

30.01.2022