Lend a token, borrow a token. Swap borrowed token for whatever. Pay back borrowed token later (with interest) to get original token back (with interest/rewards)
Or
Stake a token, get a liquid version of staked token. Swap liquid staking token for whatever. BUT. Now my staking position is gone, I’m no longer earning interest on my sol or getting rewards with whomever I staked with.
If I lose my Msol receipt, marinade is like “what staked sol?”
If I lose my borrowed Usdc reciept, Solend is like “Im keeping receipts”
Lucy, s’plain please.
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Ofc we can go to the stake bros cousins down the street. The lenders. We supply the stake token and borrow another token, but can only borrow less than what we supply, and now have to pay back interest also. If token we want is not available, swap borrowed token could mean I pay back more if said token increases in value. Additionally the fees I would pay are on my sol are now chopped up between validators, staking protocol, lending protocol, and finally me. Doesn’t seem very liquid to me.