Want to outperform the market in a bull run? Try this cycle lending trick. Using stablecoin USD1 as the base, you can operate as follows: first, collateralize your assets to borrow USD1 for investment to earn returns. Once profits are received, use these earnings as collateral to borrow more USD1, and repeat the cycle. This can significantly amplify your capital efficiency.
However, this approach requires certain risk appetite. You need to strictly control the collateral ratio and risk exposure, as market reversals could trigger liquidation. But if you have confidence in your market judgment, this strategy can indeed help you increase your returns during an upward trend. The key is to find a rhythm that matches your risk tolerance.
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Want to outperform the market in a bull run? Try this cycle lending trick. Using stablecoin USD1 as the base, you can operate as follows: first, collateralize your assets to borrow USD1 for investment to earn returns. Once profits are received, use these earnings as collateral to borrow more USD1, and repeat the cycle. This can significantly amplify your capital efficiency.
However, this approach requires certain risk appetite. You need to strictly control the collateral ratio and risk exposure, as market reversals could trigger liquidation. But if you have confidence in your market judgment, this strategy can indeed help you increase your returns during an upward trend. The key is to find a rhythm that matches your risk tolerance.