Hey crypto fam,
During this dip I am considering taking a loan out on the celsius wallet. My goal would be to buy more crypto currencies that can be staked like ADA.
The loan APR on a 25% LTV ratio is 0.75% and the gainz in ADA are a 4-5% staking reward before the potential rise for the Goguen release.
I understand there is inherent risk in the loan, but a 25% LTV would be hard to liquidate. I also understand the not your keys not your coin scenario, had the hand dealt to me already. Another concept would be to take out an insurance on the loan via Nexus Mutual, which I would need to recalculate the durational risk to reward… I am keen to see what celsius is doing with their own internal insurance coming soon though.
This could be considered yield arbitraging I guess, but I am curious to know what people would think of it…?
Thanks in advance!