/biz/ - Business & Finance

>>49746043
>>49746043
>>49746043

From last thread's OP:

as of today, ~40% of AAVE's total supply of LINK is currently out in loans
if you've been paying attention LINK loans in aave have been pretty rare, with the platform typically having a 1% total borrowed/total supply ratio on LINK, thus storing your LINK there never really got you any interest
but as of today, you get 2% APY on your LINK

so what the FUCK is going on? it appears that this deviation from normal started as of barely even a month ago
some party has been slowly but steadily borrowing up AAVE's LINK throughout these past few weeks, but to what end? what is the motivation for one to owe LINK?

i can come up with only 3 scenarios:
1. some whale plans to short LINK or is very bearish on LINK
2. some megawhale wants to make a massive LINK purchase, but is worried of slippage. so he will instead "buy" indirectly by borrowing LINK and eating up the liquidation penalty, as it will be a small price to pay for getting to "buy" LINK for cheap. in that case you should get your link the FUCK out of aave ASAP
3. some defi/cefi platform is running low on LINK and they use AAVE to make up for it. there has been a lot of cluster fuckery recently

anyone got any leads or could help in any way with this rabbithole?
i've been here daily and nobody has pointed this out, kinda surprising (and scary) actually that nobody even noticed