Borrow USD vs ETH at an upfront 3% APR
Trade Idea: Interest rates are rising fast but for those of you that want to borrow USD and currently hold ETH you could do the following: Sell spot ETH, BUY ETH Futures, Earn 3+% APR and receive Dollars today.
Essentially you are being paid 3% to borrow for whatever period you choose (Select appropriate Future contract).
Here's the catch: With the upcoming merge on ETH there is a possibility of a disagreement leading to a hard fork (split) of ETH into 2 competing chains. If that happens you would likely miss out on the offshoot chain on the Spot ETH you sold
You could also do a short term spread trade if you felt that the 3% was going to close or go back to 1
Good Luck! No advice.
Risks: ETH Merge, Exchange Exposure, Spread widening, Cash position subject to M2M, etc
Essentially you are being paid 3% to borrow for whatever period you choose (Select appropriate Future contract).
Here's the catch: With the upcoming merge on ETH there is a possibility of a disagreement leading to a hard fork (split) of ETH into 2 competing chains. If that happens you would likely miss out on the offshoot chain on the Spot ETH you sold
You could also do a short term spread trade if you felt that the 3% was going to close or go back to 1
Good Luck! No advice.
Risks: ETH Merge, Exchange Exposure, Spread widening, Cash position subject to M2M, etc
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