| I see your confusion but you don’t have more. After borrow, you have your deposit plus your borrow. As to why, there are any number of reasons. - you can avoid capital gains in deposit since a loan is not capital gains. Pay for an expense or start a biz. Anything. - you can keep your btc while borrowing usd and put it into a yield. 5-20% isn’t uncommon to earn. - you can buy other coins with the usd to extend your exposure although risky. - you can borrow any coin, not just usd, as an effective short. Borrow a meme coin and pay back same amount of meme coin later but it’s worth less usd now. Compare this to say credit card borrowing rates of 20+%. Borrow rates are based on the coin but can be effectively zero. The why is up to you. It’s just not something that is possible with the regular system because of lock out. When you use defi for a while, it becomes clear how much the traditional system locks us all out. I personally deposit usd to get 5+% apy and then borrow for investing or expenses. |