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You can also lend another asset on the same platform. For instance, if you have different cryptocurrencies, you can lend an alternative asset and utilize its value to reduce your LTV. However, be cautious, as managing multiple lent assets with varied liquidation thresholds can introduce complexity to your financial management.
Strategy 4: Diversify with Alternative Tokens
Finally, consider leveraging alternative tokens, especially when ETH values decline. For example, if you've accumulated a token like Arrow from yield farming, use that to provide liquidity or pay down part of your loan. If your borrowed stablecoins cost you less to maintain than the liquidity yields you earn, the spread can work in your favor.