Deposit $1000 worth of USDT into the platform and borrow back $250 more against your collateral. The extra $250 could buy 0.25 eth at price $1000 and hodl until $2000, when you can sell 0.125 eth to repay your $250 loan.
In this way you can use decentralized borrowing to "leverage" your exposure to eth! This has massive bullrun potential for a user to be able to leverage their wealth to acquire much more, and is specifically how @CelsiusNetwork used user funds to offer those juicy APY%s!
Celsius had taken the assets of their users' bitcoin to deposit into MakerDao, and taken the stablecoins and lent them out to their customers (as well as 3AC, ultimately resulting in Celcius' bankruptcy). View the vault here: oasis.app/25977#history
We already have MakerDao available if we wanted to use this mechanism, but the Bao team has refined and updated the process to include bSTBL and some other methods that they have worked on in the background. Any of us is certainly able to use Maker but now we can also use Bao!
Hopefully by the time this upcoming bull market cycle is approaching, Bao's contracts will be battle-tested, some marketing will have been done to make the public aware, and those users having evaluated their risk-tolerance and needs will have Bao at their disposal.
For those of us well-educated and savvy web3 traders and degens, this will become VERY important as we approach the bull market because of the upside potential. Everyone can make $$ hand-over-fist in the bull run.
Afterwards, your position would need to be unwound as we return to bear cycle. Its pretty risky but if you or I as an individual evaluate our risk-tolerance, it is a method that we may choose to utilize!
THIS is the case that all have been waiting for: when are our $bao gonna moon? this is why we need to worry about the bSTBL basket and Bao Markets, testing them for bugs and making sure they are ready for the mainstream.
I know that most of us are just worried about our locked $baos and "WEN UNLOCK" but if we as the farming community contribute now and take ownership for this project's success, THAT is wen $bao will moon 🚀
@CryptoAraya Not yet, we are pending final testing on the veBao contact, check the discord for recent announcements!