Quote:
Originally Posted by TheGodson
I created a chart....
Quote:
Originally Posted by GlassGlazer
cool post dude. good job putting in some leg work...
Yes, thanks for the posting that info.
------------------------------------------------------------
Expanding slightly upon my thinking from my earlier post:
>>> Option 1
Invest 4 BTC with Celsius for 1 year
[*1] and borrow with 25% LTV @1%APY. Use the borrowed funds to buy 1 BTC worth of ETH and reinvest that @5.5% with BlockFi.
*Need >11.5%
[*2] gains on ETH to beat investing the BTC @4% with Nexo.
*Would be 4.5% net interest gain on the borrowed funds, and
*Would be 1.25% net interest gain on the full collateralised funds compared to keeping on my Trezor, all else being equal.
[*3]
>>> Option 2
Invest 2 BTC with Celsius for 1 year and borrow with 50% LTV @~9%APY. Use the borrowed funds to buy 1 BTC worth of ETH and reinvest @5.5% with BlockFi. Plus, invest 2 BTC @4% with Nexo.
*As with Option 1, need >11.5%
[*4] gains on ETH to beat investing the BTC @4%APY with Nexo.
*Would be 3.5% net interest
to pay on the borrowed funds, and
*As with option 1, there would be 1.25% net interest gain on the full collateralised funds.
I'd appreciate input from anyone kind enough to give it, eg:
1. Have I missed anything?
2. Is there much to chose between the two options?
(I'd feel happier splitting the collateralised funds between two parties.)
3. Is there an advantage to having 25% LTV vs 50% LTV in the event the BTC price should crash?
4. Thoughts on the risk involved with BlockFi, Nexo, etc holding the funds?
[*1] As an example. Could be more/less BTC and longer/shorter than a year
[*2] (4 x 4%) + 1% - 5.5% = 11.5%
[*3] Assuming BTC:ETH ratio remains constant, for simplicity
[*4] (2 x 4%) + 9% - 5.5% = 11.5%