Part 5/8:
One advanced strategy for experienced investors involves leveraging assets by borrowing stablecoins, which generally hold value more consistently than volatile cryptocurrencies. This allows investors to utilize borrowed funds, maintain a position in liquidity pools, and maximize returns without risking their entire portfolio.
By illustrating a scenario where $10,000 is used as collateral to borrow $3,000 for investment in a liquidity pool earning 100% APR, investors can effectively leverage their assets to gain more exposure while controlling their risk. This strategy transforms the investment dynamics, enabling capital to grow notwithstanding fluctuations in the market.