Crypto Borrowing, Inflation Chase - How To Borrow and Earn on Cub Kingdom...

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Value in cryptocurrencies has a way of spreading across protocols of different networks, and though people tend to give much attention to the risks involved in crypto loans, the merits outweigh the downsides and definitely outperforms the traditional banking system. In a base level, the traditional banking system has zero investment opportunities, It's just a business feeding the business.

The case with crypto is totally different because the average Joes get an opportunity to widen their reach and expand their income ratio. Lots of things are happening in crypto that it's moving towards a more productive atmosphere than people realise. Of course, the most disturbing aspect of crypto is often it's ability to manage "debt" and keep up with its rate of revenue regeneration, while still combating volatility, sounds suckish, I know...

It's actually a valid consideration, because from a perspective, there is a certain range of income flow that isn't economically attainable, that's when considering the cost of maintenance, development cost, and many other casualties of nature to pick on. But what I've come to realise with crypto is that it isn't "self retained" rather, it's exposed. What this means is that, in a situation where the world is supposedly reported to be worth a certain amount of money, but then we all figure that these reports are never valid because there's more money than what the world knows about. With such a system, it's impossible to create a sustainable stream of income because the line isn't just there, starting from the industries, their annual revenues are never well reported.

But with crypto, it's all different. Blockchain aids transparency and crypto distributes the value. When a said amount is reported, the blockchain is there to verify, so as such, each protocol, individually operating, is able to build structures for distribution of wealth.

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Leveraging borrowing structures for income streams

One thing with the structures built around cryptocurrency is that it takes just a little knowledge to leverage the endless opportunities. Borrowing crypto is one of the biggest yet untold structures built on this space. When you look at how the government is often going up against companies offering these services, just as we saw the SEC going up against Coinbase some time back, but that's what you get for being a publicly traded company anyways, but you'll realise, it's such a BIG DEAL to be feared that much...

Crypto borrowing isn't often spoken of, despite the value it has at heart. People tend to borrow money most times for the wrong things, or sometimes just lose track of said goals. Borrowing to pay back is a huge gamble, this is because times and season change and it totally affects or alters operations.

What this means in respect to crypto is the change in price value.

There are two ways to leverage crypto borrowing opportunities.

One is by following the basic law of inflation

Currency inflation causes a spike in assets value right? Unfortunately, it isn't exactly the same with crypto and NFTs per se, because a market crash is equally a digital asset crash, in most cases. But there's however a system that works short term, even though the time span isn't exactly attainable.

The best method around this is watching developments

When there's low developments, there's bound to be a price volatility right?

One can easily borrow let's say Axie and use BTC as collateral. Now, because one expects Axie to be volatile, it's easy to dumb borrowed assets immediately and buy back low, keep the profits and return borrowed assets.

This works perfectly with stablecoins too, that's when you borrow BTC with USDT as collateral, then sell BTC high and acquire back when low, pay off loan and get your USDT with profits, without paying so much but taking risks.

The second way is yield farming

The first method is quite difficult to execute and highly risky, but this second method isn't quite so. It's quite an easy method that costs nothing and one basically does nothing because the process of regenerating Income is just automated…

Let's say Someone has $100,000 in USDT and he wants to participate in Cub Kingdom without having to buy any volatile crypto. The way to go around this is very simple. There's currently a BTC:BNB LP that dishes out more than 20% APY.

If the person in mention is damn serious, the idea to go around this is just borrow BTC worth $50k and borrow BNB $50k, all this with his $100K as collateral. Now he has BTC and BNB to pool in Cub Kingdom, where he'll earn BTC without even paying a dime, isn't that insane?

At the appropriate time, he'll still have the borrowed BTC and BNB to lay off loans with additional yields and take his collateral back. This is the value that has been built into this network that all it takes is a little sprinkle of knowledge. Crypto is beautiful, the structures are well raised and there's quite the sustainability in these protocols…