Hi HODLers and Degens,
It might seem weird to borrow ETH just before the merge but after reading this, you might think: "Maybe I should do it too!".
Bounty hunters are spending countless hours for any bugs in the code.
Consensys is launching NFTs for the occasion and CEX are on the look-out for poentential Ethereum forks!
DeFi Degens are also refreshing their twitter feed for an unexpected new ETH Forks.
For those that were in Crypto back in 2017, you probably all remember the Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Bitcoin Diamond (BCD) forks. This was "free" money airdropped to Bitcoin holders!
Degens are therefore borrowing ETH if any new forks appears!
Borrowing rates for ETH on Aave have skyrocketed!
This is not so bad but such high utilization rate might cause issues:
- When 100% of all funds in a pool are in use, depositors won’t be able to withdraw their ETH out
- High utilization rate may cause liquidation problems for lending platforms and we all know this ain't good and will clog up the network
Finally, there is also the risk that utilization gets so high that the APR becomes >1,000% and therefore you better pray that your airdrop comes fast and makes up for the ETH fees you will have to pay.
In any case, I think this is probably a kind of safe Degen bet as long as you do not sell any of the ETH you borrowed!
Anyone trying this or planning to?
In the meantime, stay safe out there!