I have some experience with borrowing through HodlHodl. Since the amount of Bitcoin involved was small, I used it as an opportunity to gain hands-on experience with such services.
Now, I have two options: I can either buy Bitcoin directly — say, for $1,000 — or I can create a cash flow through DeFi, convert it into wrapped Bitcoin (WBTC), take out a loan backed by this WBTC, and buy more Bitcoin (similar to what Michael Saylor does). I believe this is the right path for me.
A More Detailed Strategy:
- Solana (via Orca) • Liquidity Pool: SOL–USDC ($1,000) • Rewards: SOL, USDC – 0.7–1% daily → $7–10/day • Strategy: ◦ SOL rewards → Reinvested into the pool (compounded) ◦ USDC rewards → Bridged to Arbitrum (used in Aave)
- Arbitrum (via Aave) • Supply: WBTC • Borrow: USDC (looping to maximize exposure) • Health Factor: Keep ≥ 3
Exit Strategy for Aave Position:
I plan to exit when one of the following occurs:
• The price of Bitcoin increases significantly (e.g., $150,000–$175,000), or
• The net profit from the Aave position exceeds $1,000
At that point, I’ll close the position, withdraw the WBTC, and bridge it to my Sparrow Wallet (Trezor).
What's interesting is that the SOL–USDC liquidity pool continues to generate yield independently, even after the Aave position is closed.
Additionally, I continue my monthly DCA (Dollar-Cost Averaging) into my Sparrow (Trezor) wallet.