Borrow USDT on TomoDEX when the TOMO price is low, then payback when high

This is what I did: when the price is low (like it’s $0.43 now), i use my existing TOMO (10k) as collateral to borrow $3k USDT, then use these USDT to buy 6.9k TOMO. Hopefully in the next 7 days (lending term) the price will raise up to $0.5 again, then I can sell my TOMO to payback the loan, and make 15% profit easily.

What’s your strategy to profit when the market gets low?

Nice idea. i would personally prefer longer loan durations as tomo prices have shown a tendency to be trade in a tight range for a period of time…maybe 1 month, 3 months might be my preferred time horizon to take out a loan

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I share the same view and strategy. With expectation that TOMO’s price will increase while USDT is quite stable, I will borrow USDT to buy TOMO then I can sell TOMO at higher price later to payback the loan and make profit.

What platform do you use to borrow USDT against Tomo? I looked in the Tomo wallet and don’t see how to do this. Tks

You can do that on TomoDEX.

Hi Justin, thanks for the reply. For any borrow timeframe greater than 1 day how come the Tomo staked in Tomo master aren’t available to borrow against?

Since it only takes 48 hours to un-stake, would you have any background why staked Tomo isn’t eligible collateral.

Thanks,
D

for the reason why the structure it’s designed that way in the beginning, I’ll need to consult our dev team.
But RAMP DEFI is developing a portal that will allow TOMO holders to use their staked TOMO as collateral to borrow stable coins. And it will be available soon. Stay tuned.