My guide through crypto whether we are heading for a bear, bull or sideways market .
> Be me, have 168 ETH > Do not want to sell, do not want to stare at charts for hours a week either. > Instead put my 168 ETH into a collateral debt position at MakerDAO > Loan 50-80k DAI, convert to EUR at 1:1 DAI/USD and cash out > Walk away for crypto for 6-12 months. > Use the 50-80k to live pretty fucking comfy > Loan more DAI once there is another bull run. > Pay loans back when ETH goes x2 within the next 6-24 months
Rinse and repeat, never have to sell my actual crypto because there is an actual fucking self regulated smart contract credit system by the name of MakerDAO. What do I get out of his shilling? Nothing, I suggest nobody to buy the MKR governance token, all you need is ETH and an IQ over 60 to understand this.
An extra snippet for retards who'd rather look at charts all day:
That's a lot of dialogue ive never been exposed to. Aside from googling every acronym and scouring investopedia is there another summary on this subject that you could direct me toward
Nicholas Foster
>eth doesn't x2 >Stuck with loans
I'll pass
Grayson Garcia
Check the MakerDAO subreddit: reddit.com/r/makerdao
ETH going x2 would only be a convenience, even if it did not go x2 you could still pay back your smart contract loan with your current collateral. Just don't be a retard and loan too much. You should be save with having your liquidation level anywhere above 250-300%. At 150% you get liquidated at a -15% penalty. So the most you could ever losse here is 15%, which in my case would be about 25 ETH, while still having the 50-80k USD in my pocket. Should ETH go x2 I just got my profits for free, man many months before they'd be realized as actual profits. If the entire markets drops and I get liquidated, I just got my money out months before as a very advanced stop-loss.
There is literally no downside with this system unless you loan more at collateral than you should.
Grayson Powell
Also forgot to mention that you do not have to cash out your entire CDP-DAI, example 1:
> Lock 168 ETH into a CDP > Get out 80k DAI > Hold DAI while the market crumbles > Cash out DAI as needed to pay for whatever needed. > Buy back ETH 20-50% lower with DAI, locking it into your CDP, lowering the chance of a liquidation.
Example 2:
> Lock 168 ETH into a CDP > Get out 80k DAI > Market goes -50% the day after > Pay back all your DAI or even just a part of it with no penalty or added costs.
Example 3:
> Lock 168 ETH into a CDP > Get out 80k DAI > Buy 90 ETH > Lock into CDP > Loan 80k DAI > Have a leveraged collateralized dedbt position > Play with fire but have extra profit momentum from 90 ETH in case we have a bull run.
I could paint a dozen examples, but I hope this does well enough.... And all of this in a decentralized manner, no middle man except for a smart contract ruling over your faith. I am really just trying to show anyone with substantial bags a way to stop worrying and get out money without losing long term profits here.
Hudson Lewis
Another example:
> Guy has 1005 ETH: mkr.tools/cdp/450 > Guy Loans 300K DAI > Collateralization at 294% > Liquidation price 450$ per ETH > Guy is probably enjoying the high life somewhere right now. > No, Guy is not me.
When someone is shilling a smart contract system for literally no personal gain it should be time to pay attention.
Daniel Ramirez
Reading your posts + deep into the subreddit and I have to say I'm quite intrigued. Seems like the inevitable next step in the digital financial ecosystem. However, as a broke American college student I am compelled to ask: is there anything of value here for those of us without a bankroll?
Jaxson Rodriguez
Without any bankroll any profits are hard if not impossible. However it is possible to profit of this system if you are even just flipping burgers and have the tiniest amount available to invest. Soon MakerDAO will implement multi-collateral debt positions, meaning that you will not only be able to use ETH as collateral but also other assets. One of the first assets will be Gold AND Silver (Digix will offer these tokens). With this at collateral, you could bring back your own finances to the gold standard, create a nice financial crypto/smart-contract safety net and loan responsible whenever needed. Since it is generally accepted that Gold and Silver are assets with low volatility you will also be able to loan up to 3x instead of just .1.5x as with ETH currently. This will also remove the need to ask the bank for loans in case you find yourself in a bad spot, but have money sitting in some save crypto stablecoin/token. In my opinion this is the future.
Sebastian Green
Also if anyone would like to make long term money of this, they could just buy DAI and wait for liquidations to occur. They liquidated ETH is put up for sale in the MakerDAO system at -3% of the market price. You can buy the liquidations through the system and sell them back at an instant 3% profit, last time we went below 500$ I was arbitraging 3-10% per trade. There are even automated scrips to do this for you, along with arbitraging DAI/MKR/ETH across centralized and decentralized markets. It is nice profit if you do have some money.
I am heading out now, I expect this threat to die since many don't understand the importance. I do hope that I made some understand how they can use this to their advantage.
Juan White
Sorry am I missing where it is you loan dai/Eth, can't see the option on the maker website.
That's.......actually legitimately the most interesting shill I've seen today. Kudos user. I'm gonna dmor on this.
Jayden Nelson
Wish /biz would have some more informative scenarios like in this thread. Thanks, user
Bentley Adams
np, understanding this has made me financially more comfy than spending weeks searching, hoping and begging the charts for profits. I am sure others feel like this and can benefit from this system. And if not, I hope people will start to understand in which direction smart contract development is heading. Any "system" in the real world which governs over finances can technically be recreated as a smart contract. The tools are out there, devs are slowly working their way towards MVP's. Just don't fall for anything which is not decentralized. And in my own opinion, stay away from the tokens they offer, governance or dividend tokens are still extremely speculative and risky to put any amount of money in (at this point).
PS. Bitshares actually gives you the ability to issue loans to yourself or leverage your Crypto as well, but MakerDAO is far easier to work with and explain.
Evan Turner
is that a kidney stone
Gabriel Lee
Another scenario:
> Buy 1000$ in ETH now. > Immediately loan DAI > Now you have DAI to either: > 1. Buy back at lower levels. > 2. Get back your profits earlier if the market is rallying.
Obviously don't be a imbecile and loan beyond reasonable limits. Or be one, I don't care. You'll learn like me.
Also:
> Be me > Live off crypto since 2014 > In 2018 figure out how not to sell a single gwei or satoshi while still being able to pay for my bills. > Rejoice and shill this great chance on Veeky Forums every day until it gets boring.
If you don't like holding ETH then encourage your favrite shill coin platform to implement the same system.
Angel Anderson
I threw my 130eth into singularityNet at bottom couple weeks ago
Ill have about 5 mil by summer
Jacob Harris
how the fuck can i use gold as a smart contract collateral? >be me, get 100k loan on my gold stack >spend 100k on hookers and blow >smart contract request i pay back loan in gold >i tell smart contract to pound sand because its just some meaningless 1s and 0s
Noah Murphy
what a strange shill post
no, your meme coin isnt going to do anything for at least 5 years
enjoy your bags
where is this market with cheap eth?
Joseph Reyes
Digix (DGD) will soon issue auditable tokenized gold (DGX). Meaning that you can buy a token which is pegged 1:1 to the daily gold spot price. If gold goes down, the token price also does. Whether it will work as intended is a different topic but they are working on it and partnered with MakerDAO. XAURUM already holds auditable gold storages, and Vaultoro also does. So "auditable" gold on the Blockchain is definitely possible already. But at the end of the day these are all just "stablecoins" nothing special. People even peg ETH prices to the daily exchange price of a kilo Banana 's, just google "Bananacoin"
Also something which I forgot to mention. Whenever a liquidation happens a certain % amount is redistributed to all loan holders. Meaning that your ETH bags will get heavier over time if you do not get liquidated yourself. Theoretically it also seems possible to stake your locked ETH collateral once ETH allows staking. And if it is not possible through MakerDAO I am sure a competing service will allow you to do so.
Evan Cooper
Last BUMP before I am leaving. I'll be back shilling MakerDAO in a few days with some more detailed information and articles. I hope I am helping people to get comfy just like me. As with anything, don't be a retard and just follow advice blindly, DYOR also.
