Is the apy the only way people make a profit

Question

from aave? People deposit, borrow, but then they end up having to pay what they borrow back. So is the only way you can make a profit is from apy?

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03.02.2022

13 просмотров

What do they usually use the borrowed funds for? And I thought you couldn't withdraw the borrowed funds cause you have to pay them back.

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03.02.2022

You do have to payback at sometime but your borrowed funds are yours do with as you like.

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03.02.2022

Amazing! I would like to withdraw my borrowed funds, won't it ruin my health factor tho?

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03.02.2022

When you borrow the funds always go directly to your wallet, you can decide how much to borrow and see a preview of the change to your HF.

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03.02.2022

Great! I'm not looking for any financial advice just an opinion, what do you think I should invest the borrowed funds in?

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03.02.2022

That's up to you :)

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03.02.2022

h3lpfulBrother · Accepted Answer

Generally people borrow because they have collateral they don't want to sell, and then use the borrowed funds for another opportunity.

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03.02.2022